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Net yield
Net yield is the real return of a real estate investment once all expenses and taxes have been deducted.
Detailed explanation
Unlike the gross figure, net yield subtracts the associated costs from the annual income: property tax, service charges, insurance, maintenance, taxes and possible vacancy periods. It reflects the real profit the investor obtains and is the most reliable indicator for deciding.
Practical example
That same flat with €9,600 of rent and €2,600 of annual expenses and taxes has a net yield of 7% (€7,000 on €100,000).
When it matters
Knowing the net yield is essential before investing: it is the figure that actually ends up in your pocket.
At Arkos Investor
At Arkos Investor we audit the numbers of every deal so you can estimate your net yield with real data.
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