§ 08 — Property
What does your rental property actually return?
Gross yield ignores the running costs that eat into your return. Enter rent, purchase price, and all expenses to see your real net yield — the number that matters.
Your inputs
Property
Annual expenses
Inputs local. Nothing sent anywhere.
The result
Enter your property details and click Calculate to see gross and net rental yield.
Advertisement
Gross vs net: why the gap matters
Agents quote gross yield because it looks better. A $700,000 property renting for $550/week returns a 4.09% gross yield. After a typical $10,000 in annual expenses, the net yield falls to around 2.66% — barely above inflation. That's the gap investors need to understand.
Management fees alone run 7–10% of rental income. On $28,600 annual rent, that's up to $2,860 before the first bill arrives. Add council rates, landlord insurance, maintenance, and water charges, and the difference between gross and net is often 1.5–2 percentage points.
For a more complete picture of your investment return — including loan interest, depreciation, and the ATO tax saving — try the Negative Gearing calculator.
Frequently Asked Questions
What is a good rental yield in Australia?+ open
A gross rental yield of 4–6% is considered reasonable in most Australian capital cities. Regional markets often yield 6–9%. Net yield (after expenses) typically runs 1–2% lower than gross. High-growth suburbs in Sydney and Melbourne often yield 2–3% gross — investors accept lower income in exchange for capital growth expectations.
What is the difference between gross and net rental yield?+ open
Gross rental yield is annual rent divided by purchase price — it ignores all running costs. Net yield subtracts all annual expenses (management fees, council rates, insurance, water, maintenance) from rent before dividing. Net yield is the more realistic measure of actual return.
What expenses reduce rental yield?+ open
The main expenses are: property management fees (7–10% of rent), council rates ($1,000–$2,500/yr), landlord insurance ($1,200–$2,000/yr), water rates ($600–$1,200/yr), repairs and maintenance (budget 0.5–1% of property value), and occasional capital expenses like appliances. Strata/body corporate fees apply for apartments.
Does rental yield include loan interest?+ open
No — rental yield is a property-level metric that measures rent against purchase price, independent of how you financed the purchase. Loan interest is a holding cost that affects your cash flow but not the yield of the property itself. For a full cash flow picture, use our Negative Gearing calculator.