1. WHAT IS A YIELD? A Yield is simply the current annual median rental potential (from renting out a property) divided by the current median property value. i.e. Annual Median Rent divided by Median Property Value

2. WHY ARE YIELDS IMPORTANT? Typically the yield trend precedes the SuburbWatch Index trend so the yield trend can indicate the likely trend of the SuburbWatch Index. If the Yield in a suburb is: Trending UP but the SuburbWatch Index is not trending up then this indicates some likely strengthening to come in the SuburbWatch Index trend. However if sales volumes have come from a 'low' level then it may take some time for increasing sales volumes to have a 'strengthening' effect on the SuburbWatch Index. Trending DOWN but the SuburbWatch Index is not trending down then this indicates some likely weakening to come in the SuburbWatch Index trend. However yields can sometimes trend down for a long time before the SuburbWatch Index follows this trend. SuburbWatch's Technical Analysis includes a scoring system to determine our Buy, Buy-Hold, Hold, Sell-Hold or Sell signals. (Our scoring system methodology is our very own 'secret recipe' but based on tried and true technical analysis methodology used by share traders for decades. Our analysis includes consideration of the trends of our 3 main datasets, the SuburbWatch Index, Sales volumes and Yields)

This tutorial analysis should be read in light of the other edutorials also available for you uniquely at www.SuburbWatch.co.nz