Net Rental Yield Calculator

Rental yield is an important indicator for property investment, calculated by dividing annual rental income by the property purchase price or market value. However, many investors only calculate the \"gross rental yield\" and overlook expenses such as management fees, rates, government rent, maintenance costs, vacancy periods and agent commissions, leading to overstated returns. Net rental yield deducts these costs and better reflects the actual cash flow performance of an investment property.

In Hong Kong, because property prices have long been high, residential rental yields are generally low, usually between 2% and 3%, with some older buildings or shops offering slightly higher yields. Before deciding to buy a property for rental income, investors should use net rental yield as the evaluation benchmark and compare it with other investment tools such as bonds, REITs or stocks, rather than focusing only on property appreciation and ignoring rental return.

HK FinBox 的真實租金回報率計算機，讓你輸入物業價格、每月租金、管理費、差餉、地租、維修預備金及空置率等資料，計算毛租金回報率及真實租金回報率。計算機幫助你全面了解買樓收租的實際收益。

Besides yield, consider the impact of mortgage payments on cash flow. If rental income is not enough to cover the monthly mortgage and related expenses, the investor will need to subsidise from other income, increasing financial risk. Also, the property market cycle and rental demand will affect vacancy rates and rent levels, so have a basic understanding of the local market before investing.