How To Work Out The Yield & ROI (Return On Investment)

Рет қаралды 2,701

Күн бұрын

This week we are running through the calculations you need to know in order to work out Gross Yield, Net Yield and ROI (return on investment).
#roi #propertyinvestment #calculation
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Пікірлер: 29

@pedrotejero6828 6 ай бұрын

I am sorry if I am wrong, but the ROI should be the money left in the deal, 25.000 plus legals and fees. So the ROI is approximately 8.7%. In your example you are using the full purchasing cost. Again thanks for all the information shared with us

@craigbedford3058 3 ай бұрын

correct- i thought the same

@manni192 8 ай бұрын

Personally I think you should also account for taxes as part of the expenses before calculating net yield. HMRC love getting their rental income from landlords, whether it's 20/25% corporation tax + 8/32/35% dividend tax or 20/40/45% income tax. Makes a big difference to the money that goes into your bank account at the end of each year.

@PropertyCouple 8 ай бұрын

Everyone’s tax situation varies as you have mentioned above so that would be a whole separate video - this one was to show how to work out yield and ROI. Thanks for watching

@jasonleung2560 Күн бұрын

Lia, got a question. You mentioned net yield at 8:55. Which is the annual net income x 12 divided by purchase price x 100. Do you add refurb costs into the total purchase price to work out the net yield?

@crinkle2649 8 ай бұрын

These videos are so incredibly helpful and you two make it easier to understand.

@radekkaszuba8348 3 ай бұрын

Fantastic content and very easy to understand. Well done to you ❤🎉

@leodass 4 ай бұрын

Thank You Mdm Very very educational

@lyngordon940 8 ай бұрын

Enjoyed watching & looking forward to the new stuff ahead!!

@PropertyCouple 8 ай бұрын

Awesome, thank you!

@MARKB3946 8 ай бұрын

Great work and explanation as usual. Have an awesome and productive week.

@PropertyCouple 8 ай бұрын

Thanks, you too!

@rudrabarathan2737 6 ай бұрын

Brilliant ,video ver

@1024sofia 8 ай бұрын

u guys make such helpful videos!

@PropertyCouple 8 ай бұрын

Happy to hear that!

@joannunemaker6332 8 ай бұрын

I liked this video. Very informative. 😊❤

@PropertyCouple 8 ай бұрын

Glad you enjoyed it!

@dwjudd 2 ай бұрын

Do you have a spreadsheet

@wuzair 3 ай бұрын

You haven’t mentioned stamp duty as a cost ?

@JohnandCaraRetiredTravellers 8 ай бұрын

Whew Lia…a great deal of valuable information. I’m curious about the principle on the interest only loans and when are you paying the principle? Are these fixed rates? ~Cara

@PropertyCouple 8 ай бұрын

They are interest only fixed rates :)

@odysseasv7138 6 ай бұрын

If an investor was to invest for 2.6% net yield it wouldn't be so smart, there's surely other way more hands off opportunities for that low yield. So I agree with you of not being good deal. Especially if you do Int Only you HAVE to be looking at high yields. Yes capital gains over time will help but not always guaranteed not in all areas. Property is all about the perfect deal(1% or under available) that will give you minimum 8% net yield, IMO. I'd rather get a property with either 1. High yields but low prospects of appreciation 2. Average yields and average appreciation(location matters) But for sure I'd avoid anything yielding Low regardless of location etc.

@odysseasv7138 6 ай бұрын

But of course depends the strategy. I like the BRRR, well essentially what you already do with your business, as is safer regardless of yields as long as there's positive cash-flow.

@crinkle2649 8 ай бұрын

Has it really been 4 years? It doesn't seem like it was that long ago 😄

@PropertyCouple 8 ай бұрын

Yep!

@user-hl8iw8lv7s 8 ай бұрын

Do you have your own real estate communication group?

@PropertyCouple 8 ай бұрын

What does that mean?

@DowntownR 8 ай бұрын

It could be a problem if property prices don’t increase over the next 10 years or we have deflation. Both are distinct possibilities. In conclusion your last few videos tells me new purchases using “OPM” at 6% is no longer a good business.

@PropertyCouple 8 ай бұрын

It’s still a good business if you can buy at the right price.