Hi everyone
These are very basic questions concerning yield, so I'm showing my beginner status. But I really wanted to know:
1. Is yield simply = total rent for the year/total price for the property ?
Or do you have to take ou the costs of running the property from the total rent in order to better reflect the yield. Likewise, if you borrowed all of the money for the price of the property PLUS costs, do you add the costs into the equation too???
2. How do you find the historical yield for a particular suburb. eg, say the yield for the past 3 to 5 years.
Thanks in advance
John
These are very basic questions concerning yield, so I'm showing my beginner status. But I really wanted to know:
1. Is yield simply = total rent for the year/total price for the property ?
Or do you have to take ou the costs of running the property from the total rent in order to better reflect the yield. Likewise, if you borrowed all of the money for the price of the property PLUS costs, do you add the costs into the equation too???
2. How do you find the historical yield for a particular suburb. eg, say the yield for the past 3 to 5 years.
Thanks in advance
John