Net yield
Net yield is annual rent minus operating expenses (rates, insurance, management, maintenance), divided by purchase price — the return the property actually produces before mortgage costs.
Expenses on a typical NZ rental commonly consume 1.5–2.5 percentage points of gross yield — more for apartments with body corporate fees. Net yield is the honest comparison number between properties, and against other asset classes. Serious analysis goes one step further to after-mortgage cashflow at your actual interest rate.
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