How to calculate rental yield
Calculate gross and net rental yield, allow for voids and running costs, and distinguish operating yield from cash return after finance and tax.
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A useful buying budget separates completion cash, finance costs, professional work, moving, immediate works and ongoing ownership. Property tax depends on the UK nation, transaction date and buyer circumstances, so use current official rules rather than a generic percentage.
Calculate gross and net rental yield, allow for voids and running costs, and distinguish operating yield from cash return after finance and tax.
Understand SDLT bands, first-time buyer relief and additional-property or non-resident rules, then budget for a purchase in England or Northern Ireland.
Build a mortgage budget from income, spending, deposit and purchase costs. Understand lender checks and test monthly payments before committing.
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