Investment Metrics
Gross Yield
Annual rental income as a percentage of property price
Full Definition
Gross yield is calculated by dividing the annual rental income by the property purchase price, then multiplying by 100. For example, a £200,000 property generating £12,000 annual rent has a 6% gross yield. This metric doesn't account for expenses but provides a quick comparison between properties. UK investors typically seek gross yields of 5-8% for standard buy-to-let.
Related Terms
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Analyse a PropertyMore Investment Metrics Terms
ROI (Return on Investment)
The percentage return on your property investment
Net Yield
Annual profit after expenses as a percentage of property price
Cash-on-Cash Return
Annual cash flow relative to cash invested
Capital Growth
Increase in property value over time
Void Allowance
Budget set aside for empty periods