United we fall...

[Oisin Milne]

ok, so I live in drizzly UK. You know, that place with ALL the weather.

I bring today some disparaging news. I was working out the numbers on a few properties in an area I may be moving to and found this:

Average price for a 2 bed: £165,000

Average rent for a 2 bed: £950/m

Can't help but notice that this is quite drastically below the 2% rule... it's less than even the 1%... it's close to 0.5, but how the hell would that be any good? Let's analyse 4 beds...

Average price: £255,000

Average rent: £1600

0.631%

So... yeah, what's a burgeoning new investor to do? :-S

[Bryan O.]

I think the market there may be similar to what you see in some of the higher priced US areas. You are left either investing for appreciation or investing somewhere else that the numbers make more sense. I have a Welsh friend who purchased a 10-acre farm and is building a cottage on the property to use as a vacation rental.

My personal thought is to do as The Real Estate Guys say, "Live where you want, but invest where the numbers make sense." Search your markets. Street? Bath? Exeter? Wales?