Page 125 - The-Mortgage-Maximiser-Method-by-Thomas-Ilinkovski

Yield is calculated by adding up the rent payments you expect to receive from
tenants in a calendar year and then divide this by the value of the property.

Yield

Gross
Annual Rent
Rental
100
Yield
Property Price

džĂŵƉůĞ͗

tĞĞŬůLJ ƌĞŶƚ ΨϰϬϬ
ŶŶƵĂů ƌĞŶƚ ΨϮϬ͕ϴϬϬ
WƌŽƉĞƌƚLJ ǀĂůƵĞ ΨϰϮϬ͕ϬϬϬ
Yield = $20,800/$420,000 4.9%

dŚĞ ŝĚĞĂů ƐĐĞŶĂƌŝŽ ĨŽƌ ĂŶLJ ŝŶǀĞƐƚŽƌ ŝƐ ƚŽ ĮŶĚ Ă ƉƌŽƉĞƌƚLJ ƚŚĂƚ ŽīĞƌƐ ŚĞĂůƚŚLJ
LJŝĞůĚƐ ;ƚŚĞ ŚŝŐŚĞƌ ƚŚĞ ďĞƩĞƌͿ ĂƐ ǁĞůů ĂƐ ƉŽƚĞŶƟĂů ĨŽƌ ŐŽŽĚ ĐĂƉŝƚĂů ŐƌŽǁƚŚ͘
Ƶƚ ǁŚĞŶ LJŽƵ ƐƚĂƌƚ ĞdžƉĂŶĚŝŶŐ ŝŶƚŽ ŵƵůƟƉůĞ ƉƌŽƉĞƌƟĞƐ͕ LJŽƵ ĐĂŶ ŽŌĞŶ ƐƚƌŝŬĞ
Ă ŐƌĞĂƚ ďĂůĂŶĐĞ ďĞƚǁĞĞŶ ƉƌŽƉĞƌƟĞƐ ƚŚĂƚ ŚĂǀĞ Ă ŚŝŐŚĞƌ LJŝĞůĚ ǁŝƚŚ Ă ůĞƐƐĞƌ
ƉƌŽƐƉĞĐƚ ŽĨ ĐĂƉŝƚĂů ŐĂŝŶ ƚŚĂƚ ŝŶ ƚƵƌŶ ǁŝůů ĂůůŽǁ LJŽƵ ƚŽ ŐĂŝŶ ĨƵŶĚŝŶŐ ƚŽ ƉƵƌĐŚĂƐĞ
ƉƌŽƉĞƌƟĞƐ ǁŝƚŚ ůŽǁĞƌ LJŝĞůĚƐ ƚŚĂƚ ŚĂǀĞ Ă ŐƌĞĂƚĞƌ ůŽŶŐͲƚĞƌŵ ƉŽƚĞŶƟĂů ĨŽƌ

higher capital gains.

ĞĂƌ ŝŶ ŵŝŶĚ͕ ƚŚĞƌĞ ĂƌĞ ƚǁŽ ƚLJƉĞƐ ŽĨ LJŝĞůĚƐ ʹ ŐƌŽƐƐ ĂŶĚ ŶĞƚ͘ dŚĞ ĐĂůĐƵůĂƟŽŶ
ƐŚŽǁŶ ĂďŽǀĞ ĚĞƚĞƌŵŝŶĞƐ ƚŚĞ ŐƌŽƐƐ LJŝĞůĚ͘ EĞƚ LJŝĞůĚ ŝƐ ƚŚĞ ƐĂŵĞ͕ ďƵƚ ĂůƐŽ ƚĂŬĞƐ

ĞdžƉĞŶƐĞƐ ůŝŬĞ ĂŐĞŶƚ͛Ɛ ĨĞĞƐ͕ ƌĂƚĞƐ ĂŶĚ ƉƌŽƉĞƌƚLJ ŝŶƐƵƌĂŶĐĞƐ ŝŶƚŽ ĐŽŶƐŝĚĞƌĂƟŽŶ
ďLJ ĚĞĚƵĐƟŶŐ ƚŚĞŵ ĨƌŽŵ ƚŚĞ ƌĞŶƚ ďĞĨŽƌĞ ĚŽŝŶŐ ƚŚĞ ĐĂůĐƵůĂƟŽŶƐ͘ Ğ ƐƵƌĞ ƚŚĂƚ
LJŽƵ ŬĞĞƉ Ă ĐŽŶƐŝƐƚĞŶƚ ŵŽĚĞ ŽĨ ĐĂůĐƵůĂƟŽŶ ǁŚĞŶ LJŽƵ ĂƌĞ ĚŽŝŶŐ LJŽƵƌ ƌĞƐĞĂƌĐŚ
ĂƐ ůŽŽŬŝŶŐ Ăƚ Ă ŵŝdž ŽĨ ŐƌŽƐƐ ĂŶĚ ŶĞƚ ĮŐƵƌĞƐ ǁŝůů ŐŝǀĞ LJŽƵ ŝŶĐŽŶƐŝƐƚĞŶƚ ĚĂƚĂ ŽŶ
ǁŚŝĐŚ ƚŽ ďĂƐĞ LJŽƵƌ ĚĞĐŝƐŝŽŶƐ͘ ĂůĐƵůĂƟŶŐ ŶĞƚ ǁŝůů ŶĂƚƵƌĂůůLJ ƉƌŽǀŝĚĞ LJŽƵ ǁŝƚŚ
Ă ŵŽƌĞ ĂĐĐƵƌĂƚĞ ĐŽŵƉĂƌŝƐŽŶ͕ ƉĂƌƟĐƵůĂƌůLJ ŝĨ LJŽƵ ĂƌĞ ƉƵƌĐŚĂƐŝŶŐ Ă ƵŶŝƚ ǁŚĞƌĞ

ƚŚĞƌĞ ĐĂŶ ďĞ ƐŝŐŶŝĮĐĂŶƚ ĐŽƐƚƐ ǁŝƚŚ ŽĚLJ ŽƌƉŽƌĂƚĞ ĂŶĚ ƐƚƌĂƚĂ ĨĞĞƐ͘

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