Glossary
1 min read
What is a gross yield?
How much rent a property earns a year, compared to how much it is worth today.
It’s calculated as: (Rent per week x 52) / current value
A $500,000 property earning $500 a week would have a gross yield of:
$500 x 52 / $500,000 = 0.052
You can then x100 to get 5.2%
Note, this calculation doesn’t look at any of your costs like rates and insurance.