Property yield: how to calculate it properly
Yield is not annual rent divided by purchase price. It is net income after costs, voids and taxes.
01
Gross and net yield
Gross yield gives a first picture. Net yield shows what remains in your pocket. The difference can be large.
Include taxes, service charges, insurance, maintenance and management. Without them, the comparison is misleading.
02
The hidden costs
Voids, repairs and arrears are part of the cycle. A reserve protects the investment.
Yield must be compared with time and risk. A high percentage with high volatility is not always better.
“The yield that matters is the one left after reality.”
This article is general information and does not constitute legal, tax or investment advice.
The Journal
Related articles
01Property investment: yield, risk and time horizon
Yield is not a percentage on a spreadsheet. It is a combination of income, cost, liquidity and time.
02Small apartments as investments: yield with limits
Demand, renovation cost and liquidity. When a small Athens apartment is genuinely profitable.
03Investing in central Athens: opportunity or trap?
Demand, renovation cost and noise. The criteria for investing in the historic centre.
The Journal
Do you have a property or a decision ahead?
A structured 45 minute conversation can clarify the next move.