Ponty
pfm Member
At 5% yield the 500k property is earning 25k pa. House prices aren't down the last 12 months so now you're at 525k property v 520k cash. But no one buys a house to let for a year and over the long term property is going to do better than cash unless you're exceptionally unfortunate with the timing. Otherwise who would ever buy property to let?
No chance of a 5% yield for me. More like 2-3. A lot less hassle and risk to earn 4.5% on cash on fixed deposit. Totally agree that long term, chances are you’ll be fine. I’d beg to differ that prices aren’t down over the past 12 months. Friends on the market in decent areas have seen viewings evaporate. If they want to actually sell, at least 15% off I reckon.