And I ' m also comparing the gross yield of rent , before rates , maintenance , insurance , management fees etc . Net yield would be hardly anything . PE ratio is also the classic way of determining whether something is overvalued where ' s your contrarial evidence to say it ' s not ? What makes you think a professional investor would have a higher yield ? Can they charge a higher rent for the same house just because they ' re professional ? They might save a bit on the management fees but my figures are before they ' re even taken into account . And exactly , I ' m totally ignoring capital gains because it ' s impossible to keep climbing and it ' s already stopping . As soon as you rely on capital gains you become a property speculator and part of the problem , simple as that . People who say they ' re in it for the residential rental income are just spewing bullshit .