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Rental Yields
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lowis
Posts: 1,952 Forumite
How do you work out a rental yield? What factors are to be included in the calculations?
For example, what the yield be if a flat is worth £150k, rental income is £950 a month and the combined mortgage/service charge costs are £485.
For example, what the yield be if a flat is worth £150k, rental income is £950 a month and the combined mortgage/service charge costs are £485.
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gross yield = 950 x 12 =11400. 11400/ 150000 x 100 = 7.6%
net yield = (950-485) x 12=5580. 5580 / 150000 x 100 = 3.72%I'm a Forum Ambassador on the housing, mortgages & student money saving boards. I volunteer to help get your forum questions answered and keep the forum running smoothly. Forum Ambassadors are not moderators and don't read every post. If you spot an illegal or inappropriate post then please report it to forumteam@moneysavingexpert.com (it's not part of my role to deal with this). Any views are mine and not the official line of MoneySavingExpert.com.0 -
thanks - so basically it is calculation between rental income and value of property. i was not sure - now i know!0
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