Rent or buy cost comparison
Compare nominal renting cost with buying and selling a home over the same period. State your own resale assumption rather than treating it as a prediction.
Understand the numbers · Make life easier
Rental yield estimate
Compare a full-occupancy gross yield with a scenario that subtracts your entered annual expenses.
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Annual rental yield after entered expenses
2.4%
Gross yield assumes full occupancy and no costs. The other figure subtracts only entered costs; neither is a guarantee or a down-payment return.
Gross yield with full occupancy and no expenses3.6 %
Annual rent for the entered months300,000 TWD
Annual rental balance after entered expenses240,000 TWD
Worked steps
- 30000 × 10 − 60000 = 240000
- 240000 ÷ (1000 × 10000) × 100 = 2.4%
Gross yield assumes 12 rented months without expenses. The cost-adjusted estimate divides rent for the entered months minus annual costs by the property price. Include known taxes, management, repairs, insurance and other costs; omitted items are not estimated. Both ratios use the property price, not your down payment. Unentered costs, resale gains, transaction costs, loan principal and opportunity costs are excluded. Rent is assumed constant; the result is not a guarantee. Check actual agreements, taxes and cash flows.
Method and scope
Gross yield assumes 12 rented months and no expenses; the other yield uses your rented months and entered expenses.
Both use the property price as denominator, not your cash down payment. Unentered costs and resale gain are excluded; outcomes are not guaranteed.
References:www-ws.gov.taipei reference
What this tool does
Compare full-occupancy gross rental yield with an annual scenario after the costs you enter.
What to enter
Enter the property price, monthly rent, rented months and known annual rental and ownership expenses.
Worked example
For a price of 1000 ten-thousand TWD units, rent of 30000 for 10 months and expenses of 60000, gross yield is 3.6% and the scenario yield is 2.4%.
How it is calculated
Full occupancy uses 12 months of rent. For 10 months, subtract annual expenses from the rent received and divide by price.
Understanding the result
A negative result means the entered costs exceed the assumed annual rent; omitted expenses are not estimated.
Limitations
This is not a down-payment return, valuation or guarantee. It excludes resale gains and unentered expenses.