Rental yield is a year's rent as a percentage of the price. Gross yield uses rent only. Net yield takes off the yearly costs of owning the property, so it is closer to what you keep.
Gross yield: weekly rent × 52, divided by the price, × 100. Net yield: take the yearly costs off the yearly rent first, then divide by the price.
Worked example: a $566,000 property renting for $566 a week earns $29,432 a year, a 5.2% gross yield. With $6,000 of yearly costs the net yield is about 4.1%.
A high yield only helps if tenants keep wanting the property. We check demand before we buy.
Strata, insurance and repairs can turn a strong gross yield into a weak net one.
Most investors want both income and growth. Try our property growth calculator next.
Most of the investment properties we secure for clients are bought off market or pre market. Book a strategy call and we'll run your plan with you.
Gross yield uses rent only. Net yield takes off the yearly costs of owning the property, such as rates, insurance and management, so it is usually lower.
No. Yield compares rent with the property's price. To see what your loan does to your weekly position, use our cashflow calculator.
Across the properties we have secured for clients, the average gross rental yield is 5.2%. Past performance is not a reliable indicator of future performance.
More investor calculators: Property growth calculator · Cashflow calculator · LVR calculator
General information only. This calculator is not financial advice. Speak with your accountant or financial adviser before acting.
