Yield right?

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

as41
Participant
@as41
Join Date: 2005
Post Count: 108
January 10, 2007 - 7:19 am
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
Terryw
Participant
@terryw
Join Date: 2001
Post Count: 16,213
January 10, 2007 - 11:21 am
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
bridgebuff
Participant
@bridgebuff
Join Date: 2006
Post Count: 189
January 10, 2007 - 12:53 pm
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.
propertypower
Member
@propertypower
Join Date: 2006
Post Count: 312
January 12, 2007 - 4:59 pm
Hi as41,
I like to do conservative calculations and use rent before any expenses and price of the house including closing costs.
Sanjiv
â€œThere is no passion to be found playing small – in settling for a life that is less than the one you are capable of living.â€ – Nelson Mandela