All Topics / Help Needed! / Yield right?

Viewing 4 posts - 1 through 4 (of 4 total)
  • Profile photo of as41as41
    Participant
    @as41
    Join Date: 2005
    Post Count: 108

    HI
    Just wanted to ask questions regarding yield calculations.

    Do you use the rent you are getting before you deduct monthly agents fees in the equation?

    On the price of the house. Do you include stamp duty and costs in the equation?[inlove]

    Snowflake

    Profile photo of TerrywTerryw
    Participant
    @terryw
    Join Date: 2001
    Post Count: 16,213

    Generally you would use rent before any expenses and price of the house excluding any costs.

    Terryw
    Discover Home Loans
    [email protected]
    Send an email to get my newsletter.

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

    Profile photo of bridgebuffbridgebuff
    Participant
    @bridgebuff
    Join Date: 2006
    Post Count: 189

    I believe yield is mainly used by REA to dassle newbies.

    It does not really say much. It may help to settle on a general area to investigate further.

    I like to do a whole set of numbers to determine if the property makes me a profit. But I also love to crunch numbers. I also know of people who have done very well doing some basic figures on some scrap paper.

    One of my favorite jokes:

    A guy buys junk at $100.00/tonne and sells it for $400.00/tonne. He became stinking rich from the 3% profit margin.

    Profile photo of propertypowerpropertypower
    Member
    @propertypower
    Join Date: 2006
    Post Count: 312

    Hi as41,
    I like to do conservative calculations and use rent before any expenses and price of the house including closing costs.
    Sanjiv


    “There is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.” – Nelson Mandela

Viewing 4 posts - 1 through 4 (of 4 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.