Yield - The Yield of a property tells you how much of an annual return you are likely to get on your investment. It is calculated by expressing a years rental income as a percentage of how much the property is worth.
For example, if the estimated monthly rental on a flat is £600, the annual rental would be 12 times that, or £7,200. And if the flat is worth £80,000 to buy, then the “Yield" would be 9.0%.
FINAL THOUGHT - Remember that this is the Gross Yield. The Net Yield is calculated after fees, maintenance and running costs have been taken into account.
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