Rental yield
What a rental property really earns once fees and running costs are deducted.
Registration duties, land registry and notary fees. Check the exact rate with your notary.
Building fees, maintenance, insurance, local services tax, tax on rental income.
Gross yield6.00%
Yield net of costs4.56%
Total acquisition costMAD 954,000
Rent collected per yearMAD 49,500
Net income per yearMAD 43,500
Years to recoup the purchase21.9 years
Gross or net?
Gross yield simply compares a year's rent with the purchase price. It is the figure advertised in listings. Net yield accounts for acquisition costs, empty months, running costs and taxes: it is the one that matters for your decision.
Indicative calculation, excluding mortgage financing and any capital gain on resale.