Mar
01
Yield
ByThe interest earned or return by an investor on an investment, stated as a percentage of the amount invested. For investors the net yield is the only relevant number. Net yield is worked out by the following..
Rental income = $XXXX
Less mortgage interest, rates, insurance, allowance for vacancies, allowance for maintenance, allowance for property management fees and all other ongoing costs that may affect a particular property.
Agents refer only ever refer to gross yield which is simply the rent divided by the asking price. This is a meaningless number to a property investor.
