Approximate % difference between gross and net yield.

I've read somewhere that it is about 5%. Can anyone confirm if this is correct.

 

House, unit, commercial?
CBD, capital city, regional?
Old, new, projected?

How long is a piece of string?

pinkboy

 

I'd say it's a lot higher than that.
Many would be over 100% difference.

 

Just post all numbers and we'll tell you what your net cashflow is.
Net yield is a bit of a pointless figure as it depends on so many things. For example, want a good net yield? Buy a property with cash and don't get a mortgage on it.
Not really an indicator of anything then, is it?

 

As a quick rule of thumb deduct 20% from the annual rent.
So let's say property value is 400k and rent is $400 a week ($20,800 annually). Gross yield is 5.2%.

Now deduct 20% from the annual rent for costs which is $16,440. Net yield is 4.1%.

 

Um, I'd say net yield is after all costs
So my 7% property net yield is about 0-1% (after interests, management fees, council etc)

 

It varies a lot.

Insurance, council rates, PM fees all vary by state. Whether or not strata fees should be included depends on the property.

Net isn't really something I monitor. I couldn't tell you the net figure on my IPs. It just isn't important to me.

 

Thanks folks. House is what I was looking for and thought there might be a rough figure to deduct after calculating gross yield. Sounds like the 5%figure I read is not right but perhaps they were talking about commercial.