11/09/2026
Rental yield is one of the key numbers investors use to evaluate a property’s income potential.
The basic formula:
💰 Annual rental income ÷ Property value × 100 = Gross rental yield
For example, a $480/week rent on a $500,000 property ≈ 5% gross yield.
It’s also important to understand the difference between:
🔵 Gross yield — based on rental income only
🟡 Net yield — factors in expenses like council rates, land tax, and strata/body corp fees.
Higher yields can improve cash flow, while lower-yield properties in strong growth areas may still offer long-term value. The right investment often comes down to balancing cash flow, capital growth, and overall strategy.
Want to know what you could borrow for an investment property? Get in touch!
