Top 10 places to buy

The towns with the highest rental yield have been revealed by research carried out by property website www.home.co.uk.

They are as follows:

Bootle 7.7 percent

Hamilton 7.4percent

Thamesmead 7.3 percent
Mansfield 7.0 percent

Manor Park 6.9 percent

Brentford 6.7 percent
Becton 6.7 percent
Dundee 6.6 percent
Central London 6.5 percent 

Hull 6.4 percent.

Whilst a high rental yield is a good measure of an investments income generating abilities it often has an inverse relations with the properties future potential for capital gains.

Have a look at the ongoing debate over 'cashcow' vs 'trophy asset'

With the benefit of hindsight trophy assets have held up better than the cheaper areas.  Just look at the strength in the so called 'Teflon Towns' and central London.  Something that property investors should bear in mind.

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