EP. 1520 WHY DOES RENTAL YIELD MATTER, THE MOST POWERFUL WORD IN COMMERCIAL PROPERTY

💡 YIELD — the most powerful word in commercial property.

Here’s the crash course ⬇️
📊 Yield = annual rent ÷ property value.
👉 Gross yield = rent before expenses.
👉 Net yield = rent after outgoings (council, strata, land tax etc).
👉 Triple net = tenant covers everything.

Why it matters:

• In residential, yield is rarely the focus — buyers chase capital growth.
• In commercial, yield can literally make (or lose) you $$$.
• Secure a tenant on a higher rent, and your property’s value jumps overnight.

Example: one shop went from $700K to $910K in just weeks — only difference? A tenant locked in.

🔑 Pro tip: always ask whether quoted yield is gross, net, or triple net before you buy.

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