Finding the very best yields is something that interests many property investors. But top yields can be hard to locate. Here we’ll explore the subject of yield and how the PaTMa buy to let Yield Explorer helps you find high yields more easily.
First, what exactly is yield?
Yield is a simple measure of the return you will get from a buy to let property that compares purchase price and likely rental income. Yield usually means gross yield although net yield can also be used.
Yield has its limitations in that it doesn’t allow for all expenses. But yield is straightforward to work out and it allows you to find, and compare, the return a buy to let offers in a consistent way. It’s good practice to use yield as a general guide before analysing the financials of a prospective buy to let in more depth before investing.
What is a top yield?
There is no exact definition of what makes a top yield. What is a good yield depends on the views of each investor, and on what their investment objectives are. While top yields are desirable, in some situations – such as if you are investing for capital appreciation – low yields may be acceptable.
Here’s an article which explores the subject of What Is A Good Buy To Let Yield in more detail.
How to find the top yields
Although yield is a simple measure actually finding top buy to let yields, and the numbers you need to calculate them, is not so simple.
To find top yields you firstly need to find a prospective buy to let property for sale, find its purchase price, forecast its monthly rent and then do some number crunching with your calculator. Although it’s not particularly hard to do it can be very time consuming.
Now, however, PaTMa’s Yield Explorer tool not only calculates yields automatically for you it shows you where the top buy to let yields are. It works if you have an area and property in mind AND even if you don’t!
How Yield Explorer shows you where the best yields are
Yield Explorer uses the latest price information from property for sale listings together with PaTMa’s battle tested rent estimates. It instantly does yield calculations for you to produce daily updated buy to let yield rankings for the entire country.
Here’s what Yield Explorer can do for you:
- Yield Explorer shows you average likely yields for every geographic region of the country in a clear at-a-glance table. You can easily see via the yield rankings which region offers the best yields at the moment.
Yield Explorer shows you yields for every town and city. Simply click on a region to reveal yield rankings for every town and city ranked from high to low.
Yield Explorer shows you yields for every area within every town and city. Simply click on a town or city to see yields for each area ranked from high to low.
You can see where the highest (and lowest) yields are right down to individual postcode areas too.
- You can also explore visually using the Yield Explorer heatmap. Using the heatmap you can explore the entire country to find what the yields are in any area .... and easily spot areas offering high yields. This could be an area you know, an area you’re interested in or a completely new area you’ve never considered before.
Or .... just follow the clear colour coding on the heatmap and zoom in on the hottest areas.
- Using Yield Explorer you can find actual properties for sale in any postcode area. It will show you invaluable financial information for them including yield, ROI and rent estimates, price history plus useful information about the area. There’s also a link to its full sales particulars.
You can also see other properties for sale in the area and see how each compares financially to find the very best.
- Once you have found properties you’re interested in you can add them to PaTMa’s Property Prospector. You can tweak and customise the details and get accurate projections for yield, monthly and annual profit, ROI and more. It calculates mortgage affordability and the impact on your tax. It shows you an extensive range of information about the local area including price and property market trends and much more. It helps you to analyse, understand and compare to find the very best buy to let opportunities.
With PaTMa Yield Explorer, where finding the top buy to let yields used to be difficult, it is now simple. Yield Explorer offers not just one but two powerful benefits: You can research instant yield forecasts for any region, any city or town, any area or any property you’re interested in. Or you can simply go exploring to find the top yields in the country wherever they might be.
To find out more about PaTMa’s Yield Explorer and try it out for free sign up for a free trial to Property Prospector here.