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Investment

Rental yield

Ratio between annual rental income and the purchase price of a property.

Full definition

Rental yield measures the profitability of a rental property investment. Gross yield is calculated by dividing annual rent by the purchase price (rent × 12 / price × 100). Net yield deducts charges (property tax, insurance, maintenance, management, vacancy). In Belgium, average gross yield is between 3.5% and 4.5%, with significant variations by municipality. University cities and neighborhoods near public transport generally offer the best yields.

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Ratio between annual rental income and the purchase price of a property.