Rental Yield Calculator: Maximise Your Investment Returns
Rental yield measures the annual return on your property investment, expressed as a percentage of the property's value. Use this calculator to determine both gross and net rental yields, helping you assess the income potential of an investment property.
FAQ
Q1: What is a good rental yield in Australia?
In major capital cities like Sydney and Melbourne, a gross yield of 3-4% is common due to high property prices. In regional areas or mining towns, yields can be 5-8% or higher. Net yield above 4% is generally considered good. Very low yields (<2%) may indicate the property is overpriced for its rental income.
Q2: Gross yield vs net yield?
Gross yield = (Annual rent / Property value) × 100. It doesn't account for expenses. Net yield = ((Annual rent - Annual expenses) / Property value) × 100. Net yield gives a more accurate picture of your actual return after costs like rates, insurance, repairs, property management fees, and depreciation (if claimed).
Q3: What expenses should I include in annual expenses?
Include: council rates, water rates, strata fees (if strata), insurance, property management fees (typically 7-10% of rent), maintenance and repairs, landscaping, cleaning (for STCA), land tax (if applicable), and accounting/簿记 fees. Don't include mortgage interest—that's financing cost, not operational expense.
Tip: High gross yield but low net yield? Review expenses—perhaps property management is too expensive, or unexpected repairs. Negotiate with agents or switch to self-management if feasible.