Get your yield right

Gross yield calculator http://www.landlords.org.uk/yieldcalculators
Gross yield calculator
http://www.landlords.org.uk/yieldcalculators

Every so often it’s helpful to get a picture of how you’re doing in the profit stakes so we thought we’d give you a helping hand. The NLA has created a series of yield calculators to give you a rough idea of the financial status of your property investment.

We begin with the gross yield. This is the income generated by the investment, before expenses are deducted, divided by the value of the investment. Our gross yield calculator should help you identify the yield of your investment before any outgoings such as tax and insurance.

Then there’s the net yield. This helps you calculate the rate of return on an investment after subtracting all expenses, including stamp duty and taxes. Our net yield calculator should help you get a picture of how your books are balanced.

Net yield calculator http://www.landlords.org.uk/yieldcalculators
Net yield calculator http://www.landlords.org.uk/yieldcalculators

 

 

 

 

 

 

 

 

And finally, you’ll need to calculate your yield on actual investment to date. This compares your income against ALL costs incurred by the investment, including the deposit and any capital repayments. This gives you an idea of how the investment has performed since purchase.

Yield on actual investment http://www.landlords.org.uk/yieldcalculators
Yield on actual investment http://www.landlords.org.uk/yieldcalculators

 

 

 

 

 

 

 

 

 

To find out how your investments are performing, give the NLA’s yield calculators a go. But remember, they should be used as a general guides and should in no way be relied upon as business planning tools. The information provided is indicative of a basic approach to yield calculation, which may be useful to landlords interested in appraising their performance, but should not be used as a basis for decision making. They are also subject to user error and are reliant on the accuracy of data input.  The NLA Accepts no liability for the information provided by this facility, or for the consequences of any actions taken on the basis of the information provided.

 

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