Investing for rental yield
The ideal investment outcome for any property investor is a combination of decent house price growth coupled with rising income from your tenants. But how can you improve the return from your investment property?
The level of rental return you can expect from an investment property is determined by several factors, including location and the type of property, as well as overall economic conditions.
If you pay a high price for a house in a popular suburb, you would hope that rental demand is high enough in the area to offset your higher costs of ownership.
This is crucial to the success of a rental income strategy.
Many people measure their returns using gross rental yield*, which is a percentage figure calculated by dividing the…
