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I would rather make money, capital growth and have less tenants to deal with. Although the gross yield is higher your coming off a lower buy price. Outgoings on both would be comparable but as a percentage of your gross rent hurts you more.

Not bad but realistically if you bought something at a 5.5% yield for say 400k it would be a lot better located and the net % yields would be similar.

Yield doesn't tell the full story anyway. 7% on a 200k property isn't the same as 7% on a 500k property after you take out expenses.