Simple Rental Yield is a quick way to judge if a property is good buy.
$$!Simple~Rental~Yield =dfrac{Annual~Rental} { Purchase~Price}times100$$
However, the actual yield is definitely lesser:
$$!Exact~Rental~Yield =dfrac{Annual~Rental-Misc~Charges~1} { Purchase~Price+Misc~Charges~2}times100$$
where
$$!Misc~Charges~1= Annual~Property~Tax+Annual~Maintenance~Fee+Annual~Agent~Commission$$
and
$$!Misc~Charges~2=Stamp~Duty+Legal~Fee+Agent~Commission$$
Just because the exact rental yield is low does not mean that the property is not a good buy, there are other factors involved too. Do discuss with your trusted agent!
Remember, investing is about optimising your returns with what you have, it is not about maximising!
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