Real Estate Investing

Gross Rental Yield

Definition

What is Gross Rental Yield?

Annual rent before expenses divided by the property's purchase price or value.

Example in practice

₦2 million rent on a ₦40 million property gives a 5% gross yield.

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Land and buildings held for use, rental income, development, or appreciation.

Property designed mainly for people to live in.

Property used for business purposes, such as offices, shops, or warehouses.

A REIT performance measure that adjusts net income for real-estate depreciation and certain property-sale gains.

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