Gross yield and net yield answer different questions
Why gross yield helps you shortlist opportunities, while net yield gives a truer picture of the property you will actually operate.
Gross yield divides annual rent by the purchase price. It is fast to calculate and makes an initial comparison between properties straightforward, but it says nothing about the costs needed to earn that rent.
Net yield accounts for operating expenses such as management, insurance, maintenance, ground rent, and service charges. It is usually the more useful measure once a deal moves past the first shortlist.
Neither metric replaces a cash-flow view. Mortgage costs, upfront fees, tax, and your own investment horizon still matter, which is why comparing a full set of assumptions is more valuable than optimising a single percentage.