When calculating net rental yield for a UK property, what are ALL the hidden costs and expenses (e.g., void periods, maintenance buffer, mortgage interest, insurance, letting agent fees, ground rent, service charges) I absolutely need to factor in to get an accurate figure before I buy?
Quick Answer
To get an accurate net rental yield, you must factor in all costs including maintenance, void periods, compliance, insurance, letting fees, and potentially non-deductible mortgage interest, not just the headline rental income and mortgage repayment.
About This Topic
Accurately calculate net rental yield by factoring in hidden costs like 10-15% for maintenance, 1-2 months for voids, Section 24 impact, and compliance fees.
This question is part of our Financing & Mortgages category, providing expert guidance on UK property investment.
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