Calculate gross yield
Annual rent divided by acquisition cost gives a simple gross-yield starting point. It does not account for vacancy, maintenance, taxes, financing, furnishing or transaction costs.
Calculate net economics
Build a second calculation that deducts realistic recurring costs and a vacancy allowance. For a luxury home, also consider the tenant profile and the time needed to find a suitable tenant.
Resale is separate
A buyer should not combine an assumed future resale gain with current rental income as though either is guaranteed. Model them separately and state the assumptions behind each.
Use current evidence
For an investment decision, collect comparable rents, recent transaction evidence where available, and the latest project inventory. Avoid relying on a single broker quote.
Investor worksheet
Track acquisition cost, rent assumption, vacancy, recurring costs, financing and exit assumptions in one model. This makes the investment thesis transparent and easy to challenge.
Project information, pricing, availability, approvals, plans and timelines can change. Use this article for buyer education and confirm the latest official documents before making a booking or payment.