Question 1

What is the difference between gross and net yield?

Accepted Answer

Gross yield = annual rent ÷ purchase price. Net yield deducts non-recoverable charges, insurance, property tax, rental vacancy and management fees, and includes notary fees in the acquisition price. Net yield reflects far better what the property actually earns.

Question 2

Where do the rents used come from?

Accepted Answer

From the « Carte des loyers », published by the State (DHUP): asking-rent indicators per m² by town, modelled from hundreds of thousands of listings. We distinguish them by house and flat.

Question 3

Does the calculation take the loan into account?

Accepted Answer

This version calculates the gross and net yield of the property itself, independently of financing. Cash flow after a loan depends on your down payment and your rate; it may be added later.

Question 4

What is a good yield in France?

Accepted Answer

On average, gross yield often lies between 3 % (very tight areas such as Paris) and 7 %. A higher yield generally comes with a less liquid market or increased risks. Yield is never the only criterion: potential capital gains, vacancy and taxation matter just as much.

Rental yield: how much does this property earn as a rental?

Frequently asked questions about rental yield