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What is “rental yield”?

The "rental yield" or “yield” of a property tells you how much money you are likely to earn on your investment each year. It is calculated by expressing the annual rental income earned from a property as a divided by how much the property cost.


Property purchase price:
R2 000 000
Annual rental income:
R140 000
Rental Yield: 
7,0% per annum

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