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How to Calculate Net Rental Yield?
Malibusmash
Posts: 111 Forumite
Would someone be good enough to clarify the calculation for Net Yield please? By ‘Net’ I mean after all Annual and Initial property costs.
I use the following calculation but a lot of research has provided me with a lot of different ways to calculate, so I am now unsure:-
a) Gross Yield - Annual Rental Income divided by Purchase Price multiplied by 100 = %
b) Net Yield – Annual Rental Income minus Annual Expenses divided by Initial Property Costs multiplied by 100 = %
Can someone also please clarify ‘Initial Property Costs’ to be House Deposit, Mortgage Fees, Legal Fees, Stamp Duty, Decoration, or should I be including other items (such as Tax, or is that complicating things)?
I use the following calculation but a lot of research has provided me with a lot of different ways to calculate, so I am now unsure:-
a) Gross Yield - Annual Rental Income divided by Purchase Price multiplied by 100 = %
b) Net Yield – Annual Rental Income minus Annual Expenses divided by Initial Property Costs multiplied by 100 = %
Can someone also please clarify ‘Initial Property Costs’ to be House Deposit, Mortgage Fees, Legal Fees, Stamp Duty, Decoration, or should I be including other items (such as Tax, or is that complicating things)?
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