Glossary
1 min read
What is a net yield?
How much (after-costs) income a property earns a year, compared to how much it is worth today.
It’s calculated as: [ (Rent per week x 52) – Annual operating costs ] / current value
A $500,000 property earning $500 a week with $10,000 a year of operating costs would have a net yield of:
($500 x 52 - $10,000) / $500,000 = 0.032
You can then x100 to get 3.2%
Operating costs include your rates, maintenance and insurance. But, it does not include your mortgage.