12 Oct 2026 · 3 min
Gross yield is annual rent divided by price. Net yield subtracts costs and is calculated on the total purchase cost. Always compare the same measure between properties.
Three common traps
- Ignoring service charges and vacant months.
- Using an advertised rent, not a real signed rent.
- Counting rent during construction, when there is no unit yet.
A very high yield can hide an area with low demand or high costs. Ask for data, not promises.