How to correctly calculate property yields


learning how to correctly calculate property yields is one of the most beneficial need-to-know basics of successfully investing in property.

Too many investors dive into purchasing a property without actually knowing how much the property is going to pay them. Something might sound like a killer deal, but when you run the figures you might soon realize it’s not worth your time or your money.

There are two ways to work out your property yields

GROSS YIELD


To Calculate the gross yield of a property is really simple. It’s the yearly rental income divided by the purchase price. You then times it by 100 to give you the percentage. For example:

yearly rental income = £10.000

Purchase price = £100,000