Home › Comparisons › Gross vs Net Rental Yield Malaysia
Gross vs Net Rental Yield Malaysia
Gross yield is a screening ratio. Net yield is the decision metric because it deducts vacancy and recurring ownership costs.
Gross yield formula
- Annual rent ÷ purchase price.
- Useful for quick comparison only.
Net yield deductions
- Vacancy
- Assessment
- Maintenance / sinking fund
- Insurance
- Repairs
- Management or agent costs where relevant
Decision rule
- Use actual achieved/supportable rent rather than the highest advertised rent.
- Compare properties using the same expense categories.
Comparison worksheet
| Input | Option A | Option B |
|---|---|---|
| Same principal / purchase price | Enter actual | Enter actual |
| Same comparison horizon | Enter actual | Enter actual |
| Total cash out | Calculate | Calculate |
| Recurring / financing cost | Calculate | Calculate |
| Exit / settlement risk | Verify | Verify |
The worksheet forces both options onto the same assumptions. Changing tenure, deposit or usage between columns creates a fake comparison.
When this page deserves to be indexed
This page compares genuinely different financial structures or decision paths. It does not depend on swapping a bank name into a generic template, and it remains useful even if the calculator CTA is removed.