Investment
Gross yield
Ratio between annual rental income and total purchase price, before deducting charges.
Full definition
Gross yield is the simplest indicator of a rental investment's profitability. It is calculated by dividing annual rent by the total purchase price (including notary fees and registration rights) × 100. For example, an apartment bought for EUR 200,000 (all-in) rented at EUR 800/month offers a 4.8% gross yield. In Belgium, average gross yield ranges from 3.5% to 5.5% depending on location.
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Ratio between annual rental income and total purchase price, before deducting charges.