05/09/2026
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.
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