All Topics / General Property / Relationship of Rental Yeild to Property Prices

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  • Profile photo of young.learneryoung.learner
    Member
    @young.learner
    Join Date: 2003
    Post Count: 37

    Hi,
    i was just wondering about the relationship of the annual rental yeild and the property prices. I have been told that when property prices are low, so too are the rental prices due to ppl wanting to buy at cheap costs; and when property prices are high, the rental will be high too due to lack of ppl wanting to invest in the PPOR.
    Can anyone pls shed some light on this subject?

    thanks
    Karan

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    Profile photo of ajwansajwans
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    @ajwans
    Join Date: 2002
    Post Count: 45

    Actually the opposite is true, when property prices
    are high the yields are low, when property is out
    of favour less investors are entering the market,
    hence less properties available for rent and by
    the magic of supply and demand rents rise.

    andy

    Profile photo of young.learneryoung.learner
    Member
    @young.learner
    Join Date: 2003
    Post Count: 37

    ofcourse!! what the hell was i thinking!
    thanks for clearing that up for me
    Karan

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