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7/2/2019

RENTAL YIELD EXPLAINED...

1 Comment

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HOW RENTAL YEILD WORKS

Have you heard people talking about rental yield but don't actually know what it means? Let me explain it for you in basic terms.​
Picture
Rental yield is rental income as a percentage of the property’s value. The rental yield will change depending on which state you own property in.

For example, if you buy a property for $600,000 in Brisbane and it’s currently rented for $500 a week, to work out the rental yield, you would divide your total annual rental income ($26,000) by the value of the property. In this case, your rental yield would be 4.3%.

Example: Property value $600,000 and rent $500 a week.

$26,000 ($500 x 52 weeks) (annual rental income)
/ (divide) $600,000 (property value)
x (times) 100
Rental yield = 4.33%

If you buy a property in Hobart for $120,000 and rent it out for $180 per week, your rental yield would be:

$9,360 ($180 x 52 weeks) (annual rental income)
/ (divide) $120,000 (property value)
x (times) 100
Rental yield = 7.8%

So straight away you can see the difference in rental yield between a property in Queensland and a property in Tasmania.

The more you can close the gap between what your property is worth (through renovating it or capital growth, etc) and the rent it brings in, the higher the rental yield will be.

If you need any help with leasing your property, please get in contact with me.

If you would like to download some of my free real estate guides, to help you along your real estate journey, hit the image below.
​
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1 Comment
Homeia link
18/7/2019 05:42:48 pm

thanks for informative share! This is one of great post about rental yield I have seen. Hope to see more value post on your blog.

Reply



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    Kelly Pack is a Real Estate Agent in Tarragindi who gives her time to the community and helps people sell, buy and lease their homes.

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  • Home
  • Services
    • FOR SALE >
      • 146 DOUGLAS RD, SALISBURY
      • 75 ELMES RD, ROCKLEA
      • 27 CLAY ST, IPSWICH
      • 4/23 DORA ST, MOOROOKA
      • 23/11 GLIN AVE, NEWMARKET
      • 69 HARLEN RD, SALISBURY
      • 17/41 RADKE RD, BETHANIA
      • 9/7 DEBRA ST SALISBURY
      • ROCHEDALE OUTLOOK
      • BRISBANE 1
      • MAISON ROCHEDALE
    • SOLD >
      • 84-86 TRURO ST, TORQUAY
      • 11 BANKSIDE ST, NATHAN
      • 60/25 BUCKINGHAM PLACE
      • 25 BARMORE ST
      • 121 HANSEN ST
      • 20 LAUNCESTON ST
      • 15/35 HAMILTON RD
      • KNIGHTSBRIDGE
      • LOWNDES
      • TARRAGINDI RD
      • 106/35 HAMILTON RD
      • APARTMENT BULIMBA
      • 41/9 ELMA ST
      • CLASSIC QUEENSLANDER
      • MANORS MOOROOKA
      • 8/9 ELMA ST
      • RENOVATOR
      • 78 AINSWORTH ST
      • 80 AINSWORTH ST
      • 14 ANGELA ST
      • 108/35 HAMILTON RD
      • 4/9 ELMA ST
      • 238 & 240 HENSON RD
      • 2/24 GLEN ST
      • 3/104 FOREST ST
      • 1/4 TUDOR ST
      • 8 BAIKAL PLACE
      • 18 MAURICE AVE
      • 281 EVANS RD
      • 4 MELDRUM ST
      • 38 LOWNDES ST
      • 11 LILY ST
      • 389 MUSGRAVE ST
      • 37 COURTLAND ST
      • 249 LILLIAN AVE
      • 124 BLACKWOOD RD
      • 10 BELLEVUE AVE
      • 12 SALFORD ST
      • 86 HENSON RD
      • 50 MAITLAND ST
      • 351 LILLIAN AVE
      • 11 TOORAK RD
      • 124 GOLDA AVE
      • 275 420 QUEEN ST
      • 36 BOORALA CRES
      • 128 BLACKWOOD RD
      • 34 GEORGINA ST
      • 99 WINSOME RD
      • 37 BELLEVUE AVE
      • 7/39 PRINCESS ST
      • 53 GOLDA AVE
      • 92 HENSON RD
      • 59 LEAH AVE
      • 25 MAITLAND ST
      • 70 TAMBLYN ST
      • 9 SHERIDAN ST
      • 22 PEVNY ST
    • Commercial Offices
  • About
  • Blog
    • Home Renovation
    • Neighbourhood
    • Money/Finance
    • Outdoors
    • Real Estate
    • Events
  • Testimonials
  • Free Downloads
  • Contact
  • Santa Letters