Quote:
Originally Posted by erickoh
Hi, may I know how do you guys calculate your yield on your property to get 5%?
For me, after I deduct loan interests, taxes and duties, mgmt fees, agent commissions, vacant periods in-between tenants, household maintenance etc, the yield gets so low that it doesnt seem to justify the risk of investment anymore
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Usually it's just rent*12/price.
But I would do it this way:
Take net rental income after all those deductions your mentioned, and divide it by the cash you paid.
I don't think it will be "low".