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Gross yield
Gross yield does not constitute an infringement of the law under Art. 269a lit. c OR as long as it does not exceed more than 2% of the designated base rate (BGE 118 II 124 E. 5). Gross yield is only relevant in terms of earnings performance for new-build properties. This criterion can therefore only be applied to newer buildings (10 years old maximum).
Gross yield is calculated on the basis of the following formula:
Gross yield = gross rental income x 100 : market value
Whereby: gross rent = rental income excluding ancillary costs
Remarks on gross yield: gross yield is simple enough to calculate, but nevertheless hard to interpret. Furthermore, its relevance compared with net yield and return on equity is negligible.
