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A man police believe to be the head of a drug syndicate, along with his three accomplices, has been …
A man charged with attempted murder after allegedly shooting at a car which a man and a 4-year-old b…
Dash cam footage has captured a "ridiculous" driving manouevre which saw a car narrowly miss a truck…
Hey everyone our Tabby pussycat Hades has been missing since Thursday last week. We are located on Glenview Road in Glen Eden If you can check your sheds/garages in case he has gotten locked in, if anyone has seen him please contact me on 021335323.
Please see his picture attached. He is wearing … View moreHey everyone our Tabby pussycat Hades has been missing since Thursday last week. We are located on Glenview Road in Glen Eden If you can check your sheds/garages in case he has gotten locked in, if anyone has seen him please contact me on 021335323.
Please see his picture attached. He is wearing a collar with a pink badge.
Thanks so much.
Dan
Fresh negotiations to secure the future of a major Auckland park are soon to start, after fears part…
Join us at the Friday fun day friends and family sale. High Society prides itself on its New Zealand-made stance and sourcing ethical materials which is increasingly difficult as many manufacturers move offshore.
Designer clothing sale, Friday 23rd November - 9-5pm
Sizes 8-24 available
High … View moreJoin us at the Friday fun day friends and family sale. High Society prides itself on its New Zealand-made stance and sourcing ethical materials which is increasingly difficult as many manufacturers move offshore.
Designer clothing sale, Friday 23rd November - 9-5pm
Sizes 8-24 available
High Society Ltd
155 Lincoln Road, Henderson
www.highsociety.co.nz
Use the diary to keep track of your garden’s progress throughout the seasons. Record what you’ve sown, grown and harvested each month, and plan ahead with timely checklists of key garden chores for beginners and expert gardeners. It's also packed with handy horticultural hints, … View moreUse the diary to keep track of your garden’s progress throughout the seasons. Record what you’ve sown, grown and harvested each month, and plan ahead with timely checklists of key garden chores for beginners and expert gardeners. It's also packed with handy horticultural hints, troubleshooting tips and delicious seasonal recipes so you can make the most of your homegrown harvests. Order before the official on-sale date for $11.90 (save $4). Early bird special price runs until November 25, 2018.
Purchase any wood fire package during December & January and get it installed for FREE, saving you up to $1,099!
Winter comes around every year so don’t leave it until it’s freezing - ACT NOW.
Come into our showroom and see us at 2/42 Henderson Valley Road, Henderson. Email us on … View morePurchase any wood fire package during December & January and get it installed for FREE, saving you up to $1,099!
Winter comes around every year so don’t leave it until it’s freezing - ACT NOW.
Come into our showroom and see us at 2/42 Henderson Valley Road, Henderson. Email us on sales@westcityheating.co.nz or give us a call on (09) 835 1551.
We pride ourselves on being your one stop fireplace shop. Let us know how we can help you today!
5kg Heavy Duty Top Loader. Great Condition. Serviced April 2017 before going into storage as was surplus to requirements. Pick Up from Glendene. $250 Buy Now on Trade Me Listing No. 1842010758. More information on Trade Me Listing.
Not long ago, Sizwe Singhsesi found respect from gangs. Now, he's making his fame, fortune and follo…
Frustrated with bad driving Geoff Upson has started a petition to implement a practical and written test every 10 years before you can renew your drivers licence.
A person is dead after a motorbike crash in Henderson, West Auckland. The crash occurred on Henders…
No matter what investment strategy you use, calculating the potential rental return on an investment property is a key step in the purchasing decision process. The rental yield is an important indicator of how a property is likely to perform and the cash flow it will generate. So, whether you’re … View moreNo matter what investment strategy you use, calculating the potential rental return on an investment property is a key step in the purchasing decision process. The rental yield is an important indicator of how a property is likely to perform and the cash flow it will generate. So, whether you’re using a positive or negative gearing strategy, it’s a calculation that allows you to quickly decide if the numbers will stack up for you, and if you can afford to service a loan on a particular property.
In this article, we explain how to estimate the rental yield – an important first step before deciding whether an investment property is the right one for you. It should be noted that this is a general guide only – you should consult me before proceeding with any investment or tax strategy.
So, what exactly is rental yield?
When buying an investment property, investors typically consider two key factors. Capital growth, or how much a property is likely to increase in value over time, and rental yield.
The rental yield is the rental income of a property, expressed as a percentage of its value. It can be calculated in gross terms (before expenses), or as a net percentage (with expenses factored in).
* Gross rental yield = (Annual rental income / Property value) x 100
Example: A property with a market value of $500,000 that returns a weekly rent of $500, or $26,000 a year ($500 x 52), would have a potential gross rental yield of:
($26,000/ $500,000) x 100 = 5.2%.
Sometimes gross rental yields are calculated as a percentage of the original purchase price, rather than the market value. This can affect the outcome. For example, if you used an original purchase price of $400,000 in the example above, the gross rental yield would be 6.5%.
Overall, the gross rental yield offers a simple way to compare properties quickly. It gives you an overview of how the rental income compares to the value of the property and how likely it is to generate a positive or negative cash flow.
However, it does not take expenses into consideration. For that reason, a lot of investors use the net rental yield as a more accurate way of assessing returns.
* Net rental yield = [(Annual rental income – Annual expenses) / Total property cost] x 100
The net rental yield offers a clearer indication of whether you can afford an investment property, as it factors in your expenses. To work it out, you’ll need to calculate or estimate your total property costs and total annual expenses.
Total property costs could include:
• The purchase price/ market value
• Stamp duty (not yet in NZ)
• Conveyancing fees
• Building and pest inspections
• Loan establishment fees
Total annual expenses may include:
• Property management fees
• Rates and water charges
• Strata levies (if applicable)
• Insurance
• Mortgage interest repayments.
Example: A property with a weekly rent of $500 ($26,000 a year), total property costs of $500,000 and annual expenses of $25,000 would have a net rental yield of:
= [($26,000 – $25,000)/ $500,000] x 100 = 0.2%.
Calculating the net rental yield can be tricky, given you need to understand the costs of buying and running an investment property. If you’re stuck, please get in touch with me to help you crunch the numbers.
Yields versus capital growth
While strong rental yields are great, it’s important to remember that they’re not necessarily the be all and end all of a property investment. Some investors opt for a lower yield but focus on buying property that is likely to experience capital growth. It all comes down to your investment strategy and goals.
Investing in property opens up opportunities to build long-term wealth, potentially benefit from a positive cash flow and/or reap certain tax benefits please contact me to understand how you can obtain the tax benefits).
If you’re considering an investment property purchase, I can assist with arranging the right mortgage broker to give you advice on the finance option to suit your investment strategy and goals. That includes everything from calculating your borrowing power to finding you a competitive investment loan for your needs. Please get in touch and let’s make it happen.
Disclaimer
This article provides general information only and has been prepared without taking into account your objectives, financial situation or needs. We recommend that you consider whether it is appropriate for your circumstances and your full financial situation will need to be reviewed prior to acceptance of any offer or product. It does not constitute legal, tax or financial advice and you should always seek professional advice in relation to your individual circumstances. Subject to lenders terms and conditions, fees and charges and eligibility criteria apply.
Baptist Lobo CA, CPA
63 Shoreham Street
New Windsor
Auckland 0600
Mobile # +64 21 815040
Home # +64 9 8287877
A joint international operation involving Australian Federal Police and New Zealand Customs Service has resulted in the arrest of a 41-year-old Sydney man and the seizure of approximately 190kg of cocaine making it New Zealand's largest cocaine seizure.
On Monday, 20 August 2018, a container … View moreA joint international operation involving Australian Federal Police and New Zealand Customs Service has resulted in the arrest of a 41-year-old Sydney man and the seizure of approximately 190kg of cocaine making it New Zealand's largest cocaine seizure.
On Monday, 20 August 2018, a container listed as a shipment of bananas arrived in Auckland, New Zealand, on a vessel from Balboa, Panama.
New Zealand Customs and Police inspected the container and found five duffel bags on top of the banana boxes, which contained 190 blocks of cocaine each weighing around a kilogram that had been wrapped in packaging tape.
🍌 B-A-N-A-N-A-S! 🍌
Anyone who wants to report illegal drug activity can contact their nearest Police station or you can contact Crimestoppers anonymously on 0800 555 111.
More here: www.police.govt.nz...
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