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Investing and calculations

Calculating gross and net rental yield

Gross yield divides annual rent by purchase price; net yield accounts for expected costs. Use assumptions for your own property rather than copying another listing’s return.

Practical steps

  1. Record purchase, setup costs and realistic monthly rent.
  2. Allow for vacancy, maintenance and yearly expenses.
  3. Run more than one scenario in the yield calculator and compare how assumptions change the result.

A point to check

The calculated percentage is a scenario, not a guarantee of occupancy or resale value.

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