I was recently looking at large block of identical apartments in large new development in surrey. Some flats were due for completion next month and were for sale at 200,000 each. Others had already been finished and were for rent at around 900/pcm with various lettings agents.
From the above figures the rental income would appear to be about 5% of the marketed price. Is this typical? I'd always presumed something nearer 10%?
One possible explanation is that the landlords expect to make additional money from property value growth. Is that plausible? Is it typical?
Opinions welcomed.
Geoff