Assess the rental return a property may yield.
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Other ways to apply
More home loan info
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| The rent you receive will depend on the property's location and condition |
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there are big variations in rent received around the country |
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check local papers and rental agencies to see how much properties rent for in the area |
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allow a sufficient amount of the rent to cover cost such as rates, insurance and maintenance |
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| > Tenancy Services’ market rent information |
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| The yield of a property |
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is the percentage return you get on the value of the property after expenses (excluding finance/loan costs), but before tax |
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can help you decide which property is the best investment. |
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doesn't include the loan, so you can compare apples with apples (i.e your loan may differ for each property) |
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is not the only return you can get. Your total return also includes any tax advantages you get and any capitial gain (or loss) you make over time |
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| Don't be fooled into thinking a high yield is always good |
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A much higher than expected yield may indicate a risk rather than a bargain, especially for commercial property and purpose built rentals.
And you should always compare your yield with the return you could get from other investment products. |
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