Understanding Yields, ROI, and Cash Flow — Explained Simply
Property numbers don’t need to be complicated — but they do need to be understood.
Here’s a simple breakdown.
Yield
Yield shows how hard your money is working.
Example:
£12,000 annual rent ÷ £150,000 purchase = 8% yield
Useful for comparing deals — but not the whole picture.
ROI (Return on Investment)
ROI looks at the return on the actual cash invested.
This includes:
- Deposit
- Refurb
- Fees
- Stamp duty
ROI gives a more realistic view of performance.
Cash Flow
Cash flow is what’s left after:
- Mortgage
- Management
- Maintenance
- Costs
Positive cash flow = sustainable investing.
Final Thought
Yield attracts investors.
ROI builds portfolios.
Cash flow keeps them alive.
Like what you read and would love to read more sign up TODAY
Copyright © 2026 - Company registration number. 16713615
Registered office address: The Site, 24 Chosen View Road, Cheltenham, GL51 9LT.
Privacy Policy│Data Protection│Terms Of Use│Website Disclaimer │Disclaimers │Cookie Policy