Berlin - expected yield?

Re: Berlin - expected yield???

yes ,check the first post where the yeild was 4.4%.I would assume this to be gross yeild. It turns out that this property is probably yeilding 7-8% which would be a reasonable return
 
Re: Berlin - expected yield???

So net yield is therefore more important as an investor as you could purchase a property with a high yield which is eaten away by sinking funds, management fees, upkeep etc?
 
Re: Berlin - expected yield???

5% +yeild is still easy to achieve in Ireland
 
Re: Berlin - expected yield???

Barry firstly its YIELD (not yeild) and secondly i doubt that 4.4% in Berlin is the Gross yield which means prior to any deductions.As that would leave the net yield close to 2.5%.
 
Re: Berlin - expected yield???

Maybe they teach you bacchus where Barry learned investment tips like Gross yield is Gross yield?
 
Re: Berlin - expected yield???

good towns around Ireland,and a bit of creative thinking
 
Re: Berlin - expected yield???

bacchus said:
Where/how would you get 5%+ in Ireland?
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I know of someone who purchased recently and is getting 6% gross - in Dublin! Won't find it in D4 though, you have to look towards the less affluent areas and drive a very hard bargain.
 
Re: Berlin - expected yield???

bacchus said:
That's saleman's BS... Can you please be more specific?
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no its not bs, If you want 5%+ its looking at 100s of deals,its viewing property on an ongoing basis,its looking at ways to increase rental.
 
Re: Berlin - expected yield???

Folks-Berlin is the topic.

Start another thread to debate whether or not 5% is obtainable in Ireland.
 
Yield = income(from investment)/(cost of making that) investment. Can be expressed as Gross or Net....so a net yield is % after receiving rent (gross) and paying expenses out of that rent...
 
I get a bit confused between Gross Yield & Net Yield.

In calculating Gross do you just use Rental Income / Purchase price of property

Then Net Yield is Rental Income - (Mgt costs, Income Tax, maintenance etc) / Cost of property + EA & Legal Fees, Stamp Duty, Furnishing etc.

There's a whopping difference between which formula you use & it's not always clear which "Yield" is being used.

4.4% is good if all expenses have been taken into account.

Do I take it that when people refer to Yield they generally mean the Gross Yield unless otherwise specified ?
 
Im sure most people would just consider the gross yield as the benchmark to watch out for as salesmen arent in the habit of advertising taxes and anything else that may make the yield appear less attractive.

Bottom line as far as im concerned is that if you are lucky enough to have been made aware of all of these extra costs i.e. sinking fund etc then use this info. to calculate the actual yield (net yield) so you have a better idea you are getting from your investment.
 
Gobig,Thanks for that. Yes, I think what's confusing is that it's the Gross Yield that's always advertised.
I know Net Yield will be affected by a persons tax bracket etc so I guess it's impossible to give a fully accurate figure for this in general.
Once you are aware of the full picture then you can do your own calculations. I must say my Berlin EA was very clear about all the costs & had calculated the net rent so's I could get a clear picture.

I found it hard to get a straight answer as to whether Interest relief can be allowed if the Mtge is held in Ireland. I was told I had to have the property name & address clearly on my mtge documents - which I have done - but I guess I'll just have to wait & see till it's time to do my Tax Return.
 
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