Yields are a very important measure for investment properties. They are the ratio between the cost of purchasing the property and the rent that it generates.
If you are a Landlord of an investment property in Galway you are most certainly looking to maximise your rental yields. The average rental yield in Galway City in 2014 was 6.8% as per GlobalPropertyGuide (Rental Yield is an annual rental income from the property expressed as a percentage of the cost of the property).
Some Landlords however are willing to accept lower yields if the property is generating strong capital appreciation. Generally speaking investors would seek a rental income or yield that will meet the repayments of the interest on the mortgage. This however might be more difficult nowadays.
‘True’ or ‘net rental yield’ would be the yield calculated by using the rental income figure net of expenses like mortgage, insurance premiums, replacing fixtures and fittings, maintenance, ground rent and service charges, letting agency fee, void periods.