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Yield
Gross yield
Gross yield (annual) is calculated based on the estimated rental value of the neighboring areas. Annual income is estimated under the condition of full occupancy and then divided by the purchase price. Unit is indicated in percentage(%). The Gross yield may be affected by changes in rent and the like; thus, this expected revenue cannot be guaranteed in the future.
Calculation formula
Gross yield (annual) = {(estimated rent + common area charges, etc.)} x 12 months / purchase price
* Yield is the calculated amount prior to deducting the required costs such as taxes and public dues, common area charges, and other fees pertaining to the maintenance of the property.
* The above expected rent includes common area charges.
* In the case of sales properties, management/maintenance fee and repairs reserve fund to be paid to the property management association may be incurred.
Current yield
Current yield (annual) is calculated with the annual income, based on the current income from rent divided by the purchase price (rent of vacant rooms is not included in this calculation). Unit is indicated in percentage (%). The Current yield may be affected by the changes in rent and the like; thus, the current revenue from rent cannot be guaranteed in the future.
Calculation formula
Current yield (annual) = {(current rent + common area charges, etc.)} x 12 months / purchase price
* Yield is the calculated amount prior to deducting the required costs such as taxes and public dues, common area charges, and other fees pertaining to the maintenance of the property.
* The above current rent includes common area charges.
* In the case of sales properties, management/maintenance fee and repairs reserve fund to be paid to the property management association may be incurred.
