Investing

Looking beyond the headline yield

Gross rental yield is annual rent divided by purchase price, multiplied by 100. It is a useful starting point for comparing properties.

It does not account for mortgage costs, management fees, maintenance, taxes, service charges or periods without a tenant. Net returns can be substantially different.

Ask how projected rent was estimated and explore different occupancy and cost assumptions. Property values and income can fall as well as rise. Obtain independent advice suited to your circumstances before committing.