
Yield Compression - Key Factors
Rental Yield This is a common indicator to guage the performance of investment property. In simple terms, it is the percentage of rental return (Year 1) from your investment, assuming you pay cash for the investment property. For example: Gross Rental Income $5.00m pa, with a Purchase Price of $62.50m The Gross Rental Yield is 8.00% To determine a Net Rental Yield you need to deduct various expenses such as Rates & Taxes, Insurance, Management, and all other general Building