It is crucial to first know what ‘return on investment’ (ROI) you are likely to achieve on each property and to track whether you are actually achieving that whilst owning it. Another way of referring to ROI when talking about investment rental property is as a ‘yield’.
The unscrupulous or unknowing will often exaggerate the yields that can be achieved or confuse a ‘gross’ yield with ‘net’. It is important to understand the difference and not to lose sight of the value of the capital growth in your property. Likewise, other factors such as your tax status and the way the property is funded will have a direct bearing on your financial return.
The Yield Calculator below is designed as a quick and simple tool to illustrate a general principle. To ensure that you have a trouble-free financially rewarding investment, at a level of risk you are comfortable with you need to talk to your local experts - contact us.