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Research on landlord income
The research from BRDC indicates that the average landlord takes almost £60,000 in rental income from a portfolio valued at £1.2 million and comprising of 8-9 properties. This is over double the average wage of £27,174. I'm guessing that the average is inflated considerably by the London effect but I would agree that it certainly is in the right ball park.
My strategy
My strategy over the next few years is to fix some of the mortgages I have to lock myself into the low interest rate environment and also pay down some of my debt by transferring some of my mortgages to repayment from their current interest only status. In this way I'm hoping that my rental portfolio continues to generate a significant income even after the current interest rate environment normalizes over the next few years.
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1 comment:
Its stupid headlines like this that cause rifts between tenants and landlords.
What about the smaller landlord with say 5 properties which could generate only £30,000 gross. Now take away voids, paperwork and legal responsibilities together with repairs, full council tax on an empty property, gaschecks and fair wear and tear refurbishments.
I'm working on my exit plan. Currently 3 properties on rental producing £23k gross and the other being sold. It cost £8k to refurbish the property to sale standard after being tenanted.
That leaves £15k from which I have expenses on the rest. I am taxed and NI for this privilage.
That figure is less than any one of my tenants gets in benefits !!!
Yes I will be benefitting from the sale but only because prices have risen roughly to 2007 levels. Had I sold in 2008-9 that would have hit me hard.
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