Does not seem to understand normal industry definitions

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Bridgfords - www.bridgfords.co.uk
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Guest's review of Bridgfords - www.bridgfords.co.uk

“Does not seem to understand normal industry definitions ”

★★☆☆☆

written by on 21/07/2013

Hello,
I am looking for investment properties in the UK and I am a cash buyer, as is a friend of mine who is doing some research for me and found this place for sale with Bridgford in Wakefield.

Some of the agents she contacted did not get back to her, but these guys did – so big tick in that box for them.

They advertised that this house has a ‘**potential 25% rental yield!** which would be amazing – yes please!! BUT my friend has asked them several times to explain how, with the figures they are listing (60k purchase /450pcm) you can get 25% rather than the 9% we get when we work out the calculation.

Definition of rental yield : Yield is based upon the purchase price and rental income. Yield is calculated by expressing a year’s rental income as a percentage of how much the property cost. In other words, if the estimated weekly rental on a flat is £200, the annual rental would be 52 times that, or £10,400. And if the flat cost £100,000 to buy, then the "yield" would be described as 10.4%.

The only way it could work is: put down 21k as part of a BTL mortgage you can get a gross income return (before mortgage payments , costs etc) of nearly 25% on a deposit of 21k – this is not by any industry definitions I have seen, rental yield. Therefore the advert is misleading.

I was really keen on this one, but thought I would wait for the reply from the agency as to how I could get 25% return on the figures listed before I got my friend to do all the leg work – the Branch Manager said you can get it with a BTL mortgage but she did not deal with mortgages and the mortgage guy would get back to my friend – he did not. But she knew I was a cash buyer.

Anyway good that the Branch manager responded – but then that stopped – (because my friend asked a question they could not/did not want to answer) and was a little too nice if you ask me – sending them a link to a webpage to show them how to calculate rental yield, giving them the benefit of the doubt that the person who wrote the advert was new and did not understand. But my argument was that the Branch manager had weeks to take the misleading advertising down and should have been able to answer the question!! After all her email signature said she was a ‘Professionally Qualified Estate Agent’.

Anyway I am a little annoyed because I was in the middle of organising sending cash over in anticipation but I just could not help thinking that I would end up having problems – if they do not understand this simple thing, it could get messy and I need a good agent as I am abroad, what else do they not understand? Surely this is their bread and butter? I think my friend has got quite sick of me going on about this. But this type of stuff gives Estate agents a bad name.  Ok I liked the look of the house and it was a 9% yield not 25% which worked for me. I would be really annoyed if I was selling this house and this misleading , false advertising /agent stuff is putting off my cash buyer not that they would know this of course.

  • Buy Property

    Used to

  • Wakefield

    Location

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