Question 1

What is rental yield?

Accepted Answer

Rental yield is the annual return generated by an investment property through rent collection, expressed as a percentage of the purchase price.

Question 2

What is a good rental yield?

Accepted Answer

A gross yield of 6-8% is considered good. A net yield of 4-6% is attractive. In Guatemala, areas like Zone 10 and Antigua can offer interesting yields.

Question 3

What's the difference between gross and net yield?

Accepted Answer

Gross yield only considers rental income. Net yield deducts expenses like maintenance, insurance, taxes, vacancy, and management fees.

Question 4

What is Cap Rate?

Accepted Answer

Cap Rate (capitalization rate) is the net operating income divided by the property price. It's a key metric for comparing real estate investments.

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