Investors beware rising rents while yields fall
Karl Deeter Talking Finance: For property investors, yield is everything – so what is it telling us about today’s property market and where it will go?
House hunters buy homes, but investors buy yields. This is something that was overlooked in the run-up to our spectacular crash. People were buying for ‘capital appreciation’, but when your yield at purchase is 3 per cent, then it ought to tell you all the appreciation has already been captured – most likely by whoever you bought it from.
Self-styled ‘investors’ made lots of money – mainly for other people by buying their ...
