Frequently Asked Questions
What is a good rental yield in Australia?
Gross yields of 4-6% are generally considered reasonable in Australian capital cities. Regional areas can offer higher gross yields (6-10%+) but may come with higher vacancy risk. Net yields are typically 1-2% lower than gross once expenses are factored in. What constitutes a "good" yield also depends on whether you're investing for income or capital growth.
What's the difference between gross and net yield?
Gross yield is simply annual rent divided by property price — it doesn't account for any costs. Net yield subtracts annual expenses (rates, insurance, management fees, repairs, etc.) from the rental income before dividing by the property price. Net yield gives you a much more realistic picture of your actual return.
What expenses should I include?
Common investment property expenses include: council rates, landlord insurance, property management fees (typically 6-10% of rent), strata/body corporate fees, repairs and maintenance, water rates, land tax, and pest inspections. This calculator does not include mortgage repayments or depreciation as these vary widely and affect cash flow differently than yield.
This calculator provides estimates only and is not financial advice. Rental yields are one factor in property investment — consider capital growth, vacancy rates, tax implications, and your personal circumstances.
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