In Belgium

Nominal yield (rendement facial) is the yield figure most commonly displayed in property advertisements and investment brochures. It is calculated simplistically — typically annual rent divided by purchase price — without accounting for notary fees, taxes, vacancy, maintenance or management costs.

The term “facial” (face value) highlights that this is a surface-level figure, not a measure of actual profitability. It serves as a quick comparison tool but should never be used for investment decisions.

How it works

Typical nominal yield calculation: Rent x 12 / Purchase price x 100

What it ignores: notary fees (10-15% of purchase price), property tax, insurance, maintenance, management, vacancy, income tax on rental income.

Example. A listing states “6% yield” for an apartment at 150,000 EUR, 750 EUR/month rent. This is nominal yield: (9,000 / 150,000) x 100 = 6%. After notary fees and all charges, the net yield drops to approximately 3.5-4%.

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Good to know
When an estate agent or property listing quotes a yield percentage, it is almost always the nominal yield. Ask specifically what costs are included in the calculation before making any comparison.

Practical example

A property developer advertises studios in Charleroi at “7.5% yield”. Scrutiny reveals: the calculation uses the selling price (80,000 EUR) and an optimistic rent (500 EUR/month). After adding notary fees (10,000 EUR), deducting vacancy (1 month/year), property tax (400 EUR) and maintenance (300 EUR), the net yield is 4.8% — a 2.7 point gap.