What does yield of property mean?
When you invest in property, it’s important to consider the yield of that investment. The percentage tells you how much annual return your money will have on its original cost when taking into account all expenses and taxes related with owning this type real estate over time – which could include everything from insurance fees up top bids for repairs or replacements should something happen during their tenancy at any point!
Remember that this is the gross yield. The net yield is after fees, repairs and running costs have been taken into account. (Fees are likely to include Stamp Duty, solicitor’s, and surveyor’s fees, and letting and management fees). Repairs are for everyday repairs such as plumbing and decorating. Running costs include such things as service charges, ground rents, and buildings and contents insurances. That’s the bad news. The good news is that rental income is taxed after expenses such as mortgage interest, fees and property maintenance have been deducted.