With the current cost of living crisis affecting rental yields and potential rental voids, what percentage return on investment (ROI) from a UK property should I target to outperform a globally diversified equity portfolio's average 7-8% annual return?
Quick Answer
To outpace a 7-8% equity portfolio, UK property investors should aim for a minimum 10-12% all-in ROI, considering factors like liquidity, tax (e.g., 5% SDLT surcharge), and active management, especially with base rates at 4.75%.
About This Topic
Achieve 10-12% ROI on UK property to beat 7-8% equity returns. Account for 5% SDLT surcharge, 24% CGT, and 4.75% base rate. Learn how with Property Legacy Education.
This question is part of our Buying Your First Property category, providing expert guidance on UK property investment.
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