Local property market information for the serious investor

Cardiff Buy-to-Let Return / Yields – 1.8% to 12.6% a year

The mind-set and tactics you employ to buy your first Cardiff buy to let property needs to be different to the tactics and methodology of buying a home for yourself to live in. The main difference is when purchasing your own property, you may well pay a little more to get the home you (and your family) want, and are less likely to compromise. When buying for your own use, it is only human nature you will want the best, so that quite often it is at the top end of your budget (because as my parents always used to tell me – you get what you pay for in this world!).

Yet with a buy to let property, if your goal is a higher rental return – a higher price doesn’t always equate to higher monthly returns – in fact quite the opposite. Inexpensive Cardiff properties can bring in bigger monthly returns. Most landlords use the phrase ‘yield’ instead of monthly return. To calculate the yield on a buy to let property one basically takes the monthly rent, multiplies it by 12 to get the annual rent and then divides it by the value of the property.

This means, if one increases the value of the property using this calculation, the subsequent yield drops. Or to put it another way, if a Cardiff buy to let landlord has the decision of two properties that create the same amount of monthly rent, the landlord can increase their rental yield by selecting the lower priced property.

To give you an idea of the sort of returns in Cardiff…

Cardiff Property type Average Price paid (last 12 months) in Cardiff Average Rent Achieved in last 12 months in Cardiff Lower End of Yield Range in Cardiff Average Yield in Cardiff Upper End of Yield range in Cardiff
Detached £375,706 £998 1.81% 3.19% 4.03%
Semi-Detached £235,789 £815 3.29% 4.15% 5.97%
Terraced £195,905 £1,583 8.46% 9.70% 12.61%
Flats £142,072 £632 3.96% 5.34% 6.29%

Now of course these are averages and there will always be properties outside the lower and upper ranges in yields: they are a fair representation of the gross yields you can expect in the Cardiff area.

As we move forward, with the total amount of buy to let mortgages amounting to £199,310,614,000 in the country, landlords need to be aware of the investment performance of their property, especially in the era of tax increases and tax relief reductions. Landlords are looking to maximise their yield – and are doing so by buying cheaper properties.

However, before everyone in Cardiff starts selling their upmarket properties and buying cheap ones, yield isn’t the only factor when deciding on what Cardiff buy to let property to buy.  Void periods (i.e. the time when there isn’t a tenant in the property between tenancies) are an important factor and those properties at the cheaper end of the rental spectrum can suffer higher void periods too. Apartments can also have service charges and ground rents that aren’t accounted for in these gross yields. Landlords can also make money if the value of the property goes up and for those Cardiff landlords who are looking for capital growth, an altered investment strategy may be required.

In Cardiff, for example, over the last 20 years, this is how the average price paid for the four different types of Cardiff property have changed…

  • Cardiff Detached Properties have increased in value by 242.2%
  • Cardiff Semi-Detached Properties have increased in value by 253.8%
  • Cardiff Terraced Properties have increased in value by 258.2%
  • Cardiff Apartments have increased in value by 249.6%

It is very much a balancing act of yield, capital growth and void periods when buying in Cardiff. Every landlord’s investment strategy is unique to them. If you would like a fresh pair of eyes to look at your portfolio, be you a private landlord that doesn’t use a letting agent or a landlord that uses one of my competitors – then feel free to drop in and let’s have a chat. What have you got to lose? 30 minutes and my tea making skills are legendary!


Kate Gwinnutt

View more posts from this author
36 thoughts on “Cardiff Buy-to-Let Return / Yields – 1.8% to 12.6% a year
  1. Pingback: cialis over the counter walmart

  2. Pingback: best canadian online pharmacy

  3. Pingback: mexican pharmacy online

  4. Pingback: Super P-Force

  5. Pingback: prescription drugs canada

  6. Pingback: cialis otc

  7. Pingback: no prescription viagra

  8. vardenafil no rx

    I enjoy you because of all of the effort on this blog. Betty delights in carrying out internet research and it’s easy to see why. A lot of people hear all about the compelling form you convey both interesting and useful guidelines by means of the blog and attract contribution from other individuals about this area of interest and my child has always been becoming educated a great deal. Enjoy the remaining portion of the new year. You’re carrying out a dazzling job.

  9. Pingback: viagra without doctors prescription

  10. paroxetine online

    I am just writing to make you understand what a really good experience my wife’s princess obtained using your webblog. She noticed some things, which included what it is like to possess an excellent teaching spirit to make others with no trouble learn about specific tortuous things. You undoubtedly surpassed readers’ expected results. Thanks for providing those productive, trusted, informative as well as unique tips on your topic to Mary.

  11. risperidone buy

    Thank you for your entire labor on this web site. My mom take interest in managing investigations and it is obvious why. My partner and i learn all regarding the lively tactic you produce simple things through your web site and in addition invigorate response from the others on the situation then our favorite princess is truly studying a whole lot. Take advantage of the rest of the year. You have been doing a superb job.

  12. venlor

    A lot of thanks for all your efforts on this site. Gloria loves engaging in investigation and it’s easy to understand why. Almost all know all concerning the dynamic means you deliver helpful items on the web blog and as well encourage contribution from other people on that concern plus our daughter is actually discovering a lot. Have fun with the remaining portion of the new year. You’re the one conducting a good job.

  13. vreyro linomit

    I was very happy to search out this internet-site.I wished to thanks in your time for this glorious read!! I positively enjoying every little little bit of it and I’ve you bookmarked to check out new stuff you weblog post.

  14. yeezy 380

    My spouse and i ended up being relieved Peter managed to conclude his homework because of the ideas he discovered out of the web site. It is now and again perplexing to just continually be freely giving instructions which often men and women have been selling. And we understand we’ve got the website owner to give thanks to for this. The entire explanations you’ve made, the simple web site navigation, the relationships you will aid to create – it’s many extraordinary, and it’s leading our son in addition to the family do think this matter is awesome, which is truly fundamental. Thank you for the whole lot!

  15. balenciaga

    I enjoy you because of all your labor on this website. Debby enjoys doing research and it’s really simple to grasp why. A lot of people hear all of the dynamic means you provide precious steps on the website and even boost participation from people on this idea and my princess is actually understanding a lot. Take pleasure in the rest of the year. You are doing a stunning job.

  16. jordans

    I not to mention my friends appeared to be taking note of the best information and facts from your web page then at once got a terrible feeling I never expressed respect to you for those secrets. All of the people were definitely as a consequence stimulated to study all of them and have in fact been taking advantage of these things. Thank you for getting simply helpful and for making a choice on varieties of magnificent issues millions of individuals are really needing to understand about. My very own sincere apologies for not expressing appreciation to earlier.

  17. Pingback: paypal cialis no prescription

  18. Pingback: sophia viagra hot

  19. Pingback: cialis brand 20 mg

  20. Pingback: taking cialis and viagra together

  21. curry 7

    My husband and i were so thankful that Chris could conclude his survey while using the precious recommendations he got when using the weblog. It’s not at all simplistic to simply find yourself handing out strategies that many many people have been selling. And we do know we now have the website owner to give thanks to for this. The most important illustrations you have made, the easy site menu, the relationships you can make it easier to instill – it’s most powerful, and it’s helping our son in addition to us feel that the article is brilliant, and that is extremely mandatory. Thank you for the whole thing!

  22. yeezy boost 350 v2

    I simply had to appreciate you once more. I am not sure what I might have sorted out without these strategies shared by you about my industry. It previously was a very frightening circumstance in my view, however , understanding this skilled manner you resolved it took me to weep with gladness. Now i’m grateful for this support and thus wish you find out what a powerful job that you are doing teaching men and women with the aid of your webblog. Most likely you haven’t got to know all of us.

  23. golden goose sneakers

    I happen to be commenting to make you understand of the excellent encounter my cousin’s daughter found going through your site. She figured out such a lot of issues, including how it is like to possess a very effective coaching mindset to get other folks easily know precisely chosen advanced matters. You really surpassed her expected results. I appreciate you for coming up with these beneficial, trustworthy, edifying and as well as easy tips on your topic to Ethel.

  24. kyrie shoes

    My husband and i ended up being really relieved that Peter could carry out his researching via the precious recommendations he discovered from your own web pages. It’s not at all simplistic just to happen to be freely giving information and facts that some others have been trying to sell. So we realize we’ve got the website owner to appreciate for this. The most important illustrations you have made, the straightforward site navigation, the relationships you can assist to foster – it’s got most spectacular, and it’s really assisting our son and us consider that the subject is satisfying, and that is extraordinarily essential. Thanks for the whole thing!

  25. yeezy boost 350

    Thanks a lot for giving everyone a very spectacular possiblity to read from this website. It can be so amazing plus packed with amusement for me personally and my office colleagues to search your blog at the least three times weekly to find out the fresh items you have got. And indeed, we are certainly fascinated with your perfect methods you give. Selected two ideas on this page are honestly the simplest we have all ever had.

  26. Pingback: Google

Leave a Reply

Your email address will not be published. Required fields are marked *