What does the rental yield tell you about a property?

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Why is the property rental yield an invaluable tool in the world of property investment? How can you interpret it to make smart decisions? Today, we're joined by Stuart Wemyss to pull back the curtain on this lucrative topic. Not only will you understand what rental yield is and how it's calculated, but we'll also dive into why they generally range between 2% and 5% in Australia. 

We'll be exploring the two main factors that influence rental yields: the size and condition of the property and its location. Stuart will share valuable insights into four possible explanations for a property's rental yield, and how to use this information to determine if a property is investment grade or not. We'll be discussing the importance of understanding the proportion of land versus building value, why a high rental yield may indicate low capital growth, and how to spot if a property is undervalued. If you're interested in property investment, this is a not-to-be-missed episode!

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IMPORTANT: This podcast provides general information about finance, taxes, and credit. This means that the content does not consider your specific objectives, financial situation, or needs. It is crucial for you to assess whether the information is suitable for your circumstances before taking any actions based on it. If you find yourself uncertain about the relevance or your specific needs, it is advisable to seek advice from a licensed and trustworthy professional.