Posted , under Property Investment Tips.

Calculating your property’s rental yield or commonly called rental return is an important equation each property investor should be aware of.

There are two key equations:

Gross Yield and Net Yield. Both give you an indication as to the property’s performance as an investment however the gross yield doesn’t take into account any expenses or costs involved in the upkeep and management of a rental property. So we recommend you use the Net Yield equation.

Net Yield (Calculation) =  [(Annual Rent – Annual Expenses) / Purchase Price)] x 100

Example. Property Purchase Price $460,000.00  &   Weekly rent $550

Step 1

Calculate annual rental income (weekly rent x 52)

$550 pw x 52(weeks) = $ 28,000.00

Step 2

Minus annual costs & expenses (rates, insurance, property management etc)

$28,000.00 –  $3,155.00 (costs) = $24,845.00

Step 3

Divide by property purchase price

$24,845.00 / $460,000.00 = 0.054

Step 4

Multiple by 100

0.054 x 100 = 5.4% (net yield)


Feel free to call us if you’d like to talk through your property and how to improve your its yield.

Posted , under Newsletter.

New Property Manager

We’re pleased to announce that Nick Clark has joined the company in place of Patrick Rankin who served us very well for over 4 years mainly in the Mangere/Papatoetoe area. Nick has a background with SKY TV but has had a strong interest in Property Management for the last year or two. He’s relishing his new role and is succeeding Jon Harris in Papakura and Franklin. Jon is now managing the City, North Harbour and West Auckland portfolio.


Geographical areas we cover
We’ve recently expanded our coverage to include Hamilton, especially Hamilton North. We also now cover the entire Greater Auckland region with significant numbers in Franklin and Whangaparaoa. The City apartment market is also becoming a specialist area for us.


Rent Reviews

We now have a rent review section in our inspection reports. This means the Property Managers are checking the market prices every 4 months. Your response to suggested increases in the reports is encouraged. We also hope you’re finding the new reports to be of a high standard.