Investment Property Yield and Golden Rules

Investment Property Yield and Golden Rules

Welcome to this week’s insights. In this week’s edition, we carry Rule 4 of 8 in our 8 Golden Rules series, which cautions investors not to become too emotionally vested in their properties. We also carry an article which demonstrates how yield is calculated. We trust you’ll find these articles useful and insightful.

Rule 4: Love what you buy, but don’t be seduced: stay objective

Love what you buy

When buying any property there is always a tendency for the decision to be swayed by emotional factors. Never buy an investment property purely on the basis that you have fallen in love with it, if there are insufficient rational reasons for the decision. You need to keep in mind that you are investing to maximise your return on investment. Undertake a detailed cost benefit analysis to ensure the decision makes economic sense, Continue reading the full article here.

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How do you measure return on your property investment

Measure your ROI

When it comes to property investment, how do you know if you are looking at a good investment?  How do you compare different properties with each other?  There are different ways of measuring returns on your property investment.  These include investor yield, cash on cash return and total return.

This first article focuses on yield.

Yield is the net annual income (rent) generated by the property (after all costs, but excluding bond repayments) in a selected period (usually a year) divided by the purchase price. Continue reading the full article here.

We’d love to hear how these articles assist you along your investment journey, so feel free to engage with us on Facebook, Twitter or LinkedIn.

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