What is net yield in property terms?
7 February 2024 (Updated 8 February 2024)
Net yield is the annual rental profit generated by an asset, divided by the price of acquiring it.
Formula
netYield = annualRentalProfit / propertyPriceExamples
| Property price | Annual rental income | Annual rental costs | Annual rental profit | Net yield calculation | Net yield |
| £100,000 | £10,000 | £5,000 | £5,000 | £5,000 / £100,000 | 5% |
Tagged:
Property investment