Rental Yield (Rendite)
Rental yield (Rendite) for real estate in Germany: how to calculate gross and net yield, the formula, and what constitutes a good return on property investment.
Financial
Also known as: return on investment, rental return, cap rate
Gross rental yield = gross annual rent / purchase price x 100. In Munich, gross rental yields for residential properties are approximately 2.5-4%. In addition to rental yield, investors should also consider capital appreciation potential, tax benefits (depreciation/AfA), and financing conditions.
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