Hi Everyone,
I did a quick search, but could not find a clear answer.
This may be a very simple question for most of you, ive just been given two different answers by 3 different people.
When someone mentions “Rental Yield”, is the Value of the IP used to calculate this or is the amount owed to the bank on the IP used to do this?
Ie If an IP is worth $250,000 valued by the bank but only $150,000 is owed on it, do I use the $250,000 or the $150,000 in my “Rental Yield” formula?
Formula I am using. Rent p/w x 52 weeks / (Value? or Money owing to bank?) x 100 = Yield %
Cheers
Mick
I did a quick search, but could not find a clear answer.
This may be a very simple question for most of you, ive just been given two different answers by 3 different people.
When someone mentions “Rental Yield”, is the Value of the IP used to calculate this or is the amount owed to the bank on the IP used to do this?
Ie If an IP is worth $250,000 valued by the bank but only $150,000 is owed on it, do I use the $250,000 or the $150,000 in my “Rental Yield” formula?
Formula I am using. Rent p/w x 52 weeks / (Value? or Money owing to bank?) x 100 = Yield %
Cheers
Mick