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Financial Rental Yield - Method of Calculations, How to best calculate rental yield
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TSterzam
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 Jan 26 2010, 11:58 AM, updated 16y ago
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Getting Started
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Dear all,
Our current approach for property investment is on a "slow but steady" way, i.e. rental yield takes priority.
What is the most proper & conservative way of calculating rental yield?
So far, our method has been:
((Monthly rental - maintenance fee) x 11 - ONE month's maintenance fee - quit rent - fire insurance) / (Purchase price + Stamp Duty + Legal Fees + Misc Fees)
Is there a better method?
Capital appreciation is quite speculative (IMHO), but rental income is much more tangible!
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edyek
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Jan 26 2010, 07:27 PM
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My method?
(((Monthly Rental x 12 months) x 70%)-(Bank loan + Quit rent + Insurance + My gaji)) / (Purchasing price + Initial payment that you have to pay during purchasing etc etc)
1) 70% Occupancy rate. Tenant move in and out.
2) No maintenance fees for my commercial property. Tenant maintain it at all cost. Stated in tenancy agreement.
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AbangCorp
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Jan 26 2010, 08:23 PM
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Getting Started
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i like your tenancy agreement statement
very easy to manage, nett profit
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TSterzam
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Jan 26 2010, 10:31 PM
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Getting Started
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QUOTE(edyek @ Jan 26 2010, 07:27 PM) My method? (((Monthly Rental x 12 months) x 70%)-(Bank loan + Quit rent + Insurance + My gaji)) / (Purchasing price + Initial payment that you have to pay during purchasing etc etc) 1) 70% Occupancy rate. Tenant move in and out. 2) No maintenance fees for my commercial property. Tenant maintain it at all cost. Stated in tenancy agreement. Why my gaji? Is this act as a benchmark for all your property investments? What's the 'acceptable' range of percentage? |
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