Why Net Return Is the Only Number That Matters

1. Listing yields are theoretical — net return is real

Property listings typically highlight:

• gross rent,

• optimistic assumptions,

• returns before tax and costs.

But as discussed in
“The 5 Risks You’ll Never See in a Property Listing”,
the real investment begins after the listing ends.

Gross yield is marketing.
Net return is reality.

2. What net return actually measures

Net return includes:

• taxation,

• vacancy,

• maintenance and capital expenses,

• management costs,

• financing costs (if applicable).

Without these, there is no investment analysis —
only impression management.

Net return answers one question clearly:
What do I actually keep?

3. Why leverage distorts perception

A property may:

• look attractive unlevered,

• but become fragile once debt is added.

As explained in
“When Debt Increases Returns — and When It Destroys Them”,
net return is the only way to see whether leverage is working for you or against you.

If you are not calculating net return,
you are not measuring risk — you are guessing.

4. Net return reveals whether an asset can stand on its own

Professional investors ask:

“If I remove optimism, what is left?”

That is exactly what net return shows.

As demonstrated in
“How Professionals Stress-Test a Real Estate Asset / Portfolio”,
anything that collapses under modest pressure does not belong in a serious strategy.

5. Why experienced investors accept lower but cleaner returns

A property producing:

• a stable 4–5% net return

often outperforms one “promising” 7–8% gross.

Because it is:

• predictable,

• manageable,

• liquid.

And as explored in
“Cash Buyer vs Financed Buyer: Who Really Wins?”,
capital flexibility often matters more than headline yield.

6. Net return is the common language of portfolios

In a real estate portfolio:

• you are not chasing the highest percentage,

• you are balancing risk, liquidity, and durability.

As outlined in
“How a Real Estate Portfolio Is Built”,
net return is the only metric that allows meaningful comparison across assets.

Without it:

• there is no allocation logic,

• no strategy,

• no control.

7. Net return signals when it’s time to sell

A property can:

• be fully rented,

• appear healthy.

But if:

• net return declines,

• capital becomes trapped,

• risk increases,

then — as discussed in
“When You Should Sell — Even If Everything Is Going Well” —
selling becomes a strategic decision, not a failure.

The professional perspective

At Poli Real Estate, every investment analysis starts with one number:
net return under realistic conditions.

Because only net return:

• enables true comparison,

• exposes hidden risk,

• supports long-term decision-making.

Conclusion

Net return:

• is not exciting,

• does not sell easily,

• but never lies.

In real estate, success does not come from the biggest percentage — but from understanding what actually remains at the end.