> ## Documentation Index
> Fetch the complete documentation index at: https://help.kenekt.app/llms.txt
> Use this file to discover all available pages before exploring further.

# How do you calculate gross yield for a house and land package?

To determine the **gross rental yield** for a house and land package, apply this formula:

**Gross Yield = (Annual Rent / Purchase Price) × 100**

## Example Calculation

Consider this scenario:

* Weekly rent: \$550
* Total package price (land + build): \$650,000

First, convert weekly rent to annual: $550 × 52 = $28,600

Then apply the formula: ($28,600 / $650,000) × 100 = **4.4% gross yield**

## Important Considerations

Gross yield does not account for expenses like council rates, insurance, maintenance, vacancy, or property management fees. These costs would need to be subtracted to calculate net yield instead.

A key takeaway is that builders and marketers often promote gross yield because it's simpler and appears higher. This makes gross yield a useful comparative metric, but it doesn't reflect actual profitability after accounting for operational expenses.


This documentation is built and hosted on [Mintlify](https://mintlify.com), a developer documentation platform.