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How to work out yields?
Two_Cakes
Posts: 4 Newbie
Hello all. Can anyone tell me how to work out the 'yield' on a property which is mortgaged and let? I'm trying to find out what the yield is on a property worth £35k, mortgage £22K with a rental income of £400 pcm. I think its 20% but that seems very high? Oh yes and just asking as trying to discover if the mortgage would be considered a debt or the rent an income if making a mortgage application for a residential home.
0
Comments
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Gross Yield £400 *12 = £4,800 per annum rent.
£4,800 divide by £35,000.
= 13.71%.
Net yield is calculated after deduction of all costs and expenses.0
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