Motivation Indicators are key criteria used by investors to identify great deals. In Property Filter, our goal is to highlight these indicators or ‘pain points’ of vendors - often signs of motivated sellers. This helps investors make informed decisions.
Property Filter's aims to streamline investors’ efforts by strategically identifying the motivated sellers, reducing the need to contact hundreds of prospects. We are here to help you achieve more with less effort.
Yield
Yield is an indicator of a property's performance, specifically how well it generates income through renting.
Calculation of the Yield
Yield = 12x Price To Rent / Price For Sale
For example, although Property A is more expensive than Property B, calculations using the above formula show that Property A offers a better yield. This metric is crucial for comparing properties based on their potential returns on investment.
As an investor, your goal is to put your money where it yields the greatest return.
Let's Analyse:
The average sale price in the area is £150,000, while the average monthly rent is £825
Live market data indicates that a 1-bedroom Flat in B17 is expected to yield a return of 6.60%.
The estimated Property Yield is 11.65% which is favourable as it exceeds the average yield for the area.
Property Filter in Action
After analysis, we discovered that the yield for a 3-bedroom terraced house in B17 is 6.60%. Follow the steps below to filter for properties with high yields:
1. Access the Property Filter Settings:
2. Change the Minimum Yield higher than the Yield in the area. Since B17's yield is 6.60% set the Minimum yield to 6%.
3. Click on Yield, and it will show you properties with minimum yield of 8% in the area.
