Purchase price for a target rental yield
Estimate a purchase price ceiling from annual net operating income across all four UK nations. Enter acquisition costs for the location and recalculate them if the price changes. Excludes borrowing and income tax.
Worked example
£7,200 divided by 5%, less £14,000 of initial costs, leaves £130,000 for the property.
Include acquisition tax for the relevant nation and revisit the figure when negotiating the price. At zero income there is no positive purchase budget. HMRC rental income records
