All Topics / Help Needed! / Rental yield calculation help please.

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  • Profile photo of gammonbrusgammonbrus
    Member
    @gammonbrus
    Join Date: 2008
    Post Count: 96
    April 1, 2012 - 8:11 am

    Hi all,

    Hoping there might be a math guru on here that could help me with a rental yield calculation for my property as I want to put it on the market.
    I know it is a good return but I just want something that investors look for. I understand a return over 6.5% is considered good and I seen a property more expensive than mine with similar rent which had a yield over this.

    Here are the facts

    Sale price
    $220,000

    Weekly rental appraisal
    $290

    If you can be bothered, if you could share your knowledge with an explanation of how you calculated would be appreciated but not too fussed if you can’t be bothered,

    Thanks in advance.

    Profile photo of N@thanN@than
    Participant
    @n-than
    Join Date: 2010
    Post Count: 241
    April 1, 2012 - 8:23 am

    Hi Joe,

    Gross rental yield can be calculated from the following;

    Annual Rent/Purchase Price x 100

    So; (290X52)= $15 080 / $220 000 x 100

    = 6.85% Yield

    This is gross yield and doesn't take into account fees maintenance etc.

    Hope this helps,

    Nathan

    Profile photo of gammonbrusgammonbrus
    Member
    @gammonbrus
    Join Date: 2008
    Post Count: 96
    April 1, 2012 - 8:35 am

    Hi Nathan,

    This helps more than words can explain.

    And so fast, really appreciate it mate. thanks

    Profile photo of N@thanN@than
    Participant
    @n-than
    Join Date: 2010
    Post Count: 241
    April 1, 2012 - 8:40 am

    No worries. Hope the sale works out for you.

    All the best,
    Nathan

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