“High-Yield” Properties That Become Expensive Mistakes Over Time

When Yield Hides the Real Cost

Yield describes what happens today.
It does not explain:

• what happens to capital

• how liquid the asset really is

• what options exist at exit

A property can produce a 6% or 7% yield and still:

• lose value over time

• trap the investor

• offer no real exit market

This is where yield stops being a metric — and becomes a misleading signal.

Why High Yield Often Appears in the Wrong Assets

In most cases, high yield appears when:

• the location is secondary

• demand is narrow

• the purchase price is low for a reason

These properties generate income because they were cheap.
They are cheap because the market does not want them.

The problem is invisible while the rent arrives.
It becomes obvious when the investor tries to sell.

Yield Without Liquidity Is Theoretical

Real performance is revealed at exit.

Many high-yield properties:

• attract few buyers

• struggle to secure financing

• remain unsold for long periods

Yield exists while you hold the asset.
Return is revealed only when you exit.

This dynamic is equally visible in land and development structures, as explained in
Land-for-Apartments Deals: You’re Not Just Giving Land — You’re Trading Future Value, where future value allocation matters more than current numbers.

The Illusion of “Safe” Income

Investors often feel protected because:

• the property is rented

• income is stable

But:

• what if demand shifts?

• costs increase?

• the tenant leaves?

High-yield properties with no alternative use are fragile assets.

This is exactly why proper guidance matters, as discussed in
Why Choosing the Right Real Estate Advisor Makes You Money — and Choosing the Wrong One Costs You.

When Location Protects Capital — Even With Lower Yield

Strong locations:

• attract broader demand

• provide flexibility of use

• preserve exit liquidity

They often show lower yield but:

• protect capital

• allow appreciation

• offer multiple exit options

This imbalance is clearly illustrated in
Why Evia Is Greece’s Most Underrated Seaside Home Market Near Athens, where long-term value outperforms headline yield.

Yield Does Not Fix Bad Structure

In more complex investments such as land partnerships and development deals, the problem intensifies.

A project may:

• look profitable on paper

• show attractive yield

• still fail structurally

As demonstrated in
The 7 Factors That Decide Whether a Land-for-Apartments Deal Succeeds or Fails
and
Small vs Large Developers: Who Really Wins in Land Partnerships?,
structure consistently outweighs percentage returns.

Warning Signs of “Dangerous” Yield

Yield should raise concern when:

• it is significantly above market average

• income depends on a single tenant or use

• resale demand is weak

• no alternative strategy exists

In these cases, yield is not an advantage — it is a risk indicator.

How Poli Real Estate Approaches Yield

At Poli Real Estate, yield is a starting point, not a decision criterion.

Evaluation focuses on:

• entry price

• liquidity

• alternative scenarios

• exit optionality

Because an investment that “looks good” today
can become very expensive tomorrow.

Conclusion

High-yield properties are not necessarily good investments.

When:

• liquidity is weak

• demand is narrow

• flexibility is absent

yield turns into a trap.

In real estate, success is not defined by the highest percentage.
It is defined by what remains of capital when the cycle is complete.