When investing in property, there’s nothing more important than knowing how to calculate and understand your rental yield. The rental yield calculator not only helps you assess how it shapes up in comparison to other investments around your area, but it also shows which ones are worth investing in at the end of the day.

If you want to make sure that your investments aren’t a waste of time, here’s everything you need to understand about the rental yield of your investments!

 

What is a Rental Yield?

If you don’t already know, the rental yield is the amount of money you’re making by comparing the gap between your overall costs of running the property and the income you receive from renting out the property. Calculating the rental yield for an investment helps you understand the return that you will earn from an investment!

It’s crucial to invest in a property that’s going to produce high rental yields. Having a property that hovers around a 5-8% rental yield is an acceptable investment to keep.

Knowing your property’s rental yield also makes it possible for you to make comparisons to see whether you’re on the right track or if you can get an even higher rental yield by investing in a different property.

 

How to Calculate your Rental Yield

There are two types of rental yield, and each one differs in the way in which you calculate them. You can calculate the gross yield through the annual rental income and the value of the property. To find the net yield, you have to determine it by including all of the expenses involved in the property.

 

Calculating the Gross Rental Yield

To calculate the gross rental yield, you have to divide the annual rental income by the value of the property itself and then multiply it by 100 in the end. You can use the value that you bought the property for as the property value, or you could also use its current market value!

To put it short, the equation to find the gross rental yield is annual rent ÷ the property value x 100. Here’s an example:

If your property has an annual rent of $30,000 and the property value is $500,000, your gross rental yield will look something like this: $30,000 ÷ $500,000 x 100 = 6%

 

Calculating the Net Rental Yield

Running a rental yield calculator for your net rental yield might give you a clearer understanding of the income return you’re getting from your investment. To calculate this, you have to factor in all of your expenses related to the property, such as insurance, repair costs, legal costs, etc.

The equation looks like this: [(Annual rental income – annual expenses) / total property cost] x 100

Here’s an example:

If you have an annual rent of $25,000, an annual expense of $5,000, and the property value is $750,000, that means your net rental yield is 2.67%

[($25,000 – $5,000) / $750,000] x 100 = 2.67%

Understanding what rental yield is and how rental yield calculators are crucial to your investments is the difference between making a profit and eventually going broke. Make sure you invest your money wisely and calculate in the future with accuracy!

Buderim is located 95 km north of Brisbane and is considered one of the most charming Sunshine Coast towns. One of the reasons it’s so much loved is its friendly weather and expansive character. 

Often called Badderam or Budderum by the locals, Buderim also has a lot to offer when it comes to things to do. Check out these excellent spots and activities: 

 

Our favorite outdoor activities.

If you are looking to explore the outdoors this weekend, then Buderim is the place to be. You can visit the Buderim Village Park, which is a favorite spot for families and couples for picnics and outdoor BBQ. 

For those who want to immerse themselves fully in the outdoors, you can also opt to explore the Buderim Forest, Waterfall Park. It has all the natural trees, birds, and even the babbling waterfalls. The walking time here is 20 minutes, but the walking track from the other side’s entrance is 30 minutes. 

In here, you can walk through the Palms forests, and there’s also a creek crossing, Martin Creek, and a viewing area. The Serenity Falls is also located within the park. 

 

More outdoor activities.

Just outside Buderim is another beautiful spot, which is the Bellingham Maze. It’s a labyrinth that’s definitely worth getting lost into. A few meters away from the maze is a mini-golf area, a Harry Potter quiz, and a tea house. There are also special occasions when the maze is open at night, and you can bring your own drinks. 

Another worthy stop is the Maroochy Bushland Sculpture Garden, which is also a great option if you’re not into hiking the woods. It’s a garden mixed with manmade and natural wonders – a perfect place for picnics!

 

Don’t forget the beach!

It’s not a secret that many people are looking for land for sale nearby Buderim, and one of their reasons is that it has some of the best beaches in Australia. Our favorites include the Mooloolaba, Kawana, Bulckok, and Maroochydore beach. 

The Mooloolaba beach is a favorite holiday destination not just because of the pristine beach, but also because of the award-winning restaurants in the area. So, if you like an awesome gastronomical experience with the best beach view, then this is the place for you. 

For those looking to fish and surf with perfect waves, Kawana Beach is the best option. If you are looking to surf and let your family or friends relax in the spa, then Maroochydore Beach is the palace to be. 

 

Drop by the theme park.

Of course, your visit to Buderim won’t be complete if you won’t visit Aussie World Theme Park! It’s one of the best theme parks for both kids and adults. If you want to enjoy the park, it’s highly recommended that you spend three hours here. 

Another spot that’s also awesome for kids is the SEA LIFE Sunshine Coast Aquarium. Inside, you can enjoy their ocean tunnel, seal island experience, the coastal wreck adventure, tidal touch pool, and see the little blue penguins.

Buderim has a lot to offer, especially when it comes to experience and adventure. So don’t hesitate to enjoy your weekend here!