Appraising the profitability of any potential property correctly is essential. You need to be able to work out if the property you wish to buy is going to leave you with a profit at the end. Over the next few pages I will explain some of the methods used to assess profit or loss on each property.
Gross Rental YieldThe following formula is used to calculate the Gross Rental Yield of a property.
Annual)Rent
The Gross Rental Yield is calculated by dividing the annual rent by the property value and is realised by a percentage.