One of the first questions we get asked is:

“What’s the yield?”

It’s understandable. Yield is measurable. It’s simple. It gives a quick comparison.

But yield alone doesn’t tell you whether a location is genuinely investable.

Some of the weakest markets can produce attractive headline percentages. And some of the most resilient markets can look average on paper.

So what actually matters?

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Demand You Can Rely On

Most towns have “demand”.

The question is whether that demand is broad and consistent.

Is it supported by multiple employment sectors?
Is there a steady flow of working professionals or students?
Are people moving into the area — or simply staying because they have to?

Markets that rely on one employer or one industry can look strong for years. Until they aren’t.

Diversified demand is harder to see in a brochure, but easier to feel when you study a location properly.

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Employment Is Everything

At its core, rental performance is about jobs.

If people have stable employment within reach of a location, accommodation demand tends to follow.

We look for areas with:

• Healthcare hubs
• Universities
• Transport connectivity
• Industrial and commercial clusters

Not because they’re fashionable — but because they create repeatable tenant flow.

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Entry Price Has to Make Sense

A high yield achieved by underpricing risk isn’t a strategy.

What matters more is the relationship between entry price and sustainable rent.

If tenants can comfortably afford the accommodation without stretching, the income tends to be more durable.

If pricing relies on constant rent growth to justify the purchase, risk increases.

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Supply Is Often Ignored

This is where many investors don’t look closely enough.

Is new stock easy to deliver?
Are planning controls tightening?
Is there a pipeline of similar properties coming through?

In some markets, supply expands quickly whenever rents rise. That keeps pressure on pricing.

In others, development is slower and more restricted. That tends to protect existing assets.

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Liquidity Matters

An investable location should give you options.

If you needed to exit, could you?

Is there an active buyer pool?
Are lenders comfortable in that postcode?
Do comparable transactions happen regularly?

Liquidity doesn’t feel important when you’re buying — but it becomes important when circumstances change.

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Yield Is the Result — Not the Starting Point

Yield is an outcome of the fundamentals.

If demand is deep, employment is stable, supply is controlled and pricing is sensible, yield tends to look reasonable anyway.

Chasing yield first often leads investors into weaker structural positions.

The stronger approach is to understand the location properly — then assess the numbers.

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Over the past few years, we’ve seen markets with lower headline yields outperform those that initially looked more exciting.

Not because they were glamorous.

But because they were structurally sound.

And over time, structure tends to win.ty.