How Do You Calculate Rental Yield ?

[kalimantan 6]

sometimes I see newspaper or some agent report - this or that property yield 5% or 4% , etc

What are the parameters used to determine the yield.

Let's say I owe a 250k hdb loan , and my monthly mortgage is about 850 dollars. I sublet a unit at 750 dollars ...what is the rental yield like ?

[greglhc 30]

Gross yield is the (monthly rent x 12 months)/(price of the property)

E.g. 4000 per month rent of a 1m property will give you 4.8% yield

[bepgof 20]

sometimes I see newspaper or some agent report - this or that property yield 5% or 4% , etc

What are the parameters used to determine the yield.

Let's say I owe a 250k hdb loan , and my monthly mortgage is about 850 dollars. I sublet a unit at 750 dollars ...what is the rental yield like ?

A CFA level 1 question.

Financial HPY and HPS. More ppls omit the future value of money(loan interest, holding period

..... The 'soonest' the cash inflow is the best. The 'latest' the cash outflow is the best. Can you control?

Defer consumption of 'wants', turn the $ into another stream of cash inflow...

http://www.investopedia.com/exam-guide/cfa-level-1/quantitative-methods/discounted-cash-flow-yield.asp

Many ppl chiong to buy 2nd hand car, left 1 day, worth? Loan 100%

Or wait demand down, price down, then pay downpayment 40%, loan 60%. LPPL?

If u have cash, why join the unwise crowd who are 'willing' to pay interest, pay and pay.

[kalimantan 6]

wah ..you took CFA exam ?

If yes, please share with me the tough exams.

[bepgof 20]

wah ..you took CFA exam ?

If yes, please share with me the tough exams.

Level 1 only.

Calculation not difficult.

Essay-type, wow - example: How does the GFC affect the efficiency of financial markets.

There are so many 'financial markets' - primary mkt(1st hand), secondary mkt, money mkt (Libor for Europe, Sibor for Asia-Singapore lead), stock mkt(include debt & equity mkt), Forex, OTC, spot mkt, derivatives mkt......seow liao. Should read these since young.

[kalimantan 6]

hi bepgof

can u share with me WHERE and HOW to register for Level 1 exams ?

Costs ?

preparation time ?

Thanks a million (in present value)

[bepgof 20]

Relevant info here. Setup an account first.

http://www.cfainstitute.org/programs/cfaprogram/exams/Pages/index.aspx

Unless in finance-related trade, see no points to pursuit II and III.

The more I experience, the less I knew.

To understand 'finance', one needs to have some b/g of:

- accounting

- Maths

- Statistics

- Econ, mac and mic

- best with practical experience in equity/stock, debt/loan, forex/currency, derivatives/put/call/forward, etc,

- risks/returns/risk-free, cap budgeting/cap structure, etc concepts

I've done a project on evaluating the 'worth' of DBS - shareprice, cap structure, financial statements, div growth, etc...