HI
Just wanted to ask questions regarding yield calculations.Do you use the rent you are getting before you deduct monthly agents fees in the equation?
On the price of the house. Do you include stamp duty and costs in the equation?[inlove]
Snowflake
Generally you would use rent before any expenses and price of the house excluding any costs.
Terryw
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I believe yield is mainly used by REA to dassle newbies.
It does not really say much. It may help to settle on a general area to investigate further.
I like to do a whole set of numbers to determine if the property makes me a profit. But I also love to crunch numbers. I also know of people who have done very well doing some basic figures on some scrap paper.
One of my favorite jokes:
A guy buys junk at $100.00/tonne and sells it for $400.00/tonne. He became stinking rich from the 3% profit margin.
Hi as41,
I like to do conservative calculations and use rent before any expenses and price of the house including closing costs.
Sanjiv“There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.†– Nelson Mandela
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