Rental Yield Calculator Australia 2026

Rental yield is the annual return on your investment property expressed as a percentage of the property price. Gross yield = (Annual Rent / Property Price) × 100. Net yield accounts for expenses: (Annual Rent - Expenses) / Property Price × 100.

Good rental yields vary by location. Sydney averages ~3% (capital growth focus), Melbourne ~3.5%, Brisbane ~4.5%, Perth ~5.3%, Adelaide ~4.8%. Regional areas often achieve 5-7%+. Generally, 4-6% gross yield is considered good for metro areas.

Gross rental yield only considers rental income vs property price. Net rental yield deducts expenses (council rates, strata, insurance, management fees, maintenance) giving a more accurate picture of actual returns. Net yield is typically 1-3% lower than gross yield.

Not necessarily. High-yield properties (6%+) often have lower capital growth potential and may be in regional or less desirable areas. Low-yield properties (3-4%) in Sydney/Melbourne inner suburbs typically offer stronger capital growth. The best strategy balances yield AND growth.

Strategies to increase yield: (1) Increase rent (market research for competitive rates), (2) Reduce expenses (self-manage, negotiate insurance, optimize maintenance), (3) Add value (renovations that command higher rent), (4) Minimize vacancy (good property management, tenant retention), (5) Buy in higher-yield markets.

It depends on your strategy. High-yield (5%+) suits investors seeking cash flow and passive income. Low-yield (3-4%) suits investors targeting capital growth and wealth accumulation. Balanced investors target 4-5% yield in growth markets (Brisbane, Adelaide). Consider your tax position, cash flow needs, and investment timeframe.