Gross rental yield compares annual rent with a property value or acquisition price. It is a quick measure, but it excludes operating costs, finance, tax, voids and capital expenditure.
Look at the whole project
Return on cost compares an expected outcome with the full capital committed, including acquisition and improvement costs. Investors may also assess net income, cash-on-cash return and sensitivity to changing assumptions.
Illustrative projections are not guarantees. Independent financial, tax and valuation advice should be obtained before making an investment decision.