The different investments and returns for the respective property are compared. The profitability calculation thus includes the purchase price of the land, the construction and investment costs. Depending on the purchase price of the land, a lot can already affect the return. More detailed information is also available in the calculation, such as the heated and unheated area of the property, net living space, marketing costs, the income statement for rent, the building value, and much more.
Example calculation of gross rental yield:
100 x annual net cold rent / property purchase price = gross rental yield in %
Example calculation for gross rental yield:
400,000 CHF purchase price + 40,000 CHF ancillary costs = 440,000 CHFNet cold rent per year = 20,00020,000 CHF / 440,000 CHF x 100 = 4.54 percent gross rental yield
Example calculation of net rental yield:
Purchase price + ancillary purchase costsNet cold rent – (annual) administration costs – (annual) maintenance costs = annual net incomeAnnual net income / investment costs
Example calculation for net rental yield:
400,000 CHF purchase price + 40,000 CHF ancillary costs = 440,000 CHF20,000 CHF net cold rent – 800 CHF administration – 750 CHF maintenance = 18,450 Euro annual net income18,450 CHF annual net income / 440,000 CHF investment costs x 100 = 4.19 percent net rental yield