![]() ![]() Expenses can include insurance, strata fees, repair costs and legal fees, to name a few. The net rental yield will give you a more accurate figure as it factors in the ongoing expenses of your investment property, which in some instances can be considerable. While gross rental yield can be useful for determining a property’s general investment potential, it may not give you a completely realistic idea of your outgoings. Gross rental yield is a simpler calculation that looks at the amount of rental income you can receive over a year, measured against the market value of the property. There are two different types of rental yield – gross rental yield and net rental yield – and both are calculated differently, providing (sometimes substantially) different figures. ![]() It’s often expressed as a percentage and the higher the percentage generally means greater cash flow and higher return on investment. Rental yield is simply the difference between the income you receive from renting out your property minus the overall costs of your investment. Investing in property: what is rental yield? Let’s explore what rental yield is, how to calculate it, what classifies a ‘good’ rental yield, as well as other important things to consider. Understanding rental yield can help you work out which properties and suburbs might be worth investing in. If you’re considering investing in a property, it’s a good idea to understand the rental yield when trying to figure out the returns you might expect from your investment. ![]()
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