Rental Yields Made Easy

We strive to keep Wellington property owners up to date with the latest property information.

Here is another interesting Wellington real estate related news article that we thought may provide you with helpful information.


 

It’s no secret that rent is a large cost of living and in turn, having a rental property can be a revenue-generating asset. So whether you are a seasoned landlord or just looking to into buying your first rental property, we have a made a simplistic rundown of rental yields, how to calculate it and what all the numbers mean.

What is rental yield?

Starting off with the basics, rental yield is how much money a revenue-generating asset produces each year as a percentage compared to the assets overall worth.

An example is a rental home with an HomesEstimate of $450,000.

Average RentEstimate of $450 per week multiplied by 52 weeks,
Dived the sum by $450,000 as the average estimated value and that sum is the yield.

Gross Yield vs Net Yield

Gross Yield

Gross yield is the amount of raw revenue that is generated before any deductions such as income tax, property maintenance, rates, insurance etc.

Net Yield

Net yield is the total you take away after all costs and bills are paid for. The amount of profit you are making from the rental property per year.

Best rental yield locations in New Zealand

For any interested landlords……….

Continue reading this article at the original source from Homes.co.nz

 

 

 

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2018-05-30T11:03:27+00:00