Does anyone out there know why american sites generally include the loan interest rates as part of the expenses when determining Net Rental Yields, whereas Australian Sites don't.
For me, to determine 'Net' anything, it needs to weigh up all info, and hence loan interest payments on top of property expenses should be considered.
But in saying this, you would only get a +ve net yield if it was a cashflow +ve property?
Australian sites and some commentators generally just consider only property expenses (not loan costs....even though they are property expenses) when determining net yields.
What do people out there consider "Net" rental Yield to mean?
F
For me, to determine 'Net' anything, it needs to weigh up all info, and hence loan interest payments on top of property expenses should be considered.
But in saying this, you would only get a +ve net yield if it was a cashflow +ve property?
Australian sites and some commentators generally just consider only property expenses (not loan costs....even though they are property expenses) when determining net yields.
What do people out there consider "Net" rental Yield to mean?
F