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Rental Yield Calculator

Understand the return on your investment property. Calculate gross and net rental yield instantly.

$
$ /wk
$8,500
Gross Rental Yield
4.59%
Net Rental Yield
3.49%
After expenses
Annual Rental Income
$39,000
$30,500 after expenses
82% Net Return
Net Income $29,720
Expenses $8,500

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The detail

How to read your yield.

Yield is the quickest way to compare two properties on income alone. Here is what the numbers above actually tell you and where they can mislead.

Gross versus net

Gross yield is simply the annual rent divided by the property's value. It is the number quoted in listings and market reports because it is easy to calculate, but it ignores every cost of ownership. Net yield takes out the running costs, which is why it is always the more honest figure. Two properties with the same gross yield can sit a full percentage point apart once strata levies and maintenance are counted.

What counts as an expense

For the net figure, include everything it costs to hold the property in a normal year: council and water rates, strata levies if applicable, landlord insurance, management fees, repairs and maintenance, plus an allowance for compliance items like smoke alarm servicing. Loan interest is usually left out of yield calculations because it reflects your financing, not the property itself. That is what the cash flow calculator is for.

Benchmark

Sydney apartments

Gross yields for well-located Sydney units have typically sat in the high 3s to mid 4s in recent years. Anything materially above that deserves a closer look at why.

Benchmark

Sydney houses

Houses usually yield less than units, often around the 3 per cent mark gross, because more of the return comes through land value and capital growth.

Rule of thumb

The gap tells a story

A wide gap between gross and net yield usually points to high strata levies or an ageing building. Always ask what is driving the difference before you buy.

Yield is only half the return

A lower-yielding property in a tightly held pocket can outperform a high-yield one over a decade once capital growth is counted. Yield tells you how hard the property works for you today. Growth tells you what it does for you over time. The Investment ROI calculator puts the two together.

The other lever is the rent itself. A property that is well presented, well maintained and priced with real market evidence rents faster and for more. Our managed properties lease in a median of 8 days against a wider market of 19, and that difference flows straight into yield. If you want a considered view on where your rent should sit, request an appraisal.

Common questions

What is a good rental yield in Sydney?

It depends on the asset. For apartments, a gross yield in the low-to-mid 4s is healthy in the current market. For houses, around 3 per cent gross is normal because land-heavy assets earn more of their return through growth. Judge any yield against comparable properties in the same suburb rather than a citywide average.

Should I use the purchase price or current value?

Use the current market value if you want to know how the asset is performing today, which helps you compare it against alternatives. Use your purchase price if you want to measure the return on the money you originally put in. Both are valid, they just answer different questions.

Why is my net yield so much lower than gross?

Usually strata levies. In many Sydney buildings, levies are the single largest holding cost and can absorb a quarter or more of the rent. High insurance premiums and older buildings with heavy maintenance schedules have the same effect.

Does a higher yield mean a better investment?

Not on its own. Very high yields often compensate for weaker growth prospects, higher vacancy risk or a building with problems. The strongest investments usually balance a sustainable yield with genuine long-term demand for the location.

How do I improve the yield on a property I already own?

Two ways: lift the rent or cut the costs. Rent responds to presentation, minor improvements and accurate pricing against current evidence. Costs respond to reviewing insurance, challenging unnecessary spending and having maintenance done properly once rather than cheaply twice. A good manager works both sides.

This calculator produces general estimates from the figures you enter. It is a guide only, not financial or investment advice and not a formal appraisal or valuation. Speak to your accountant or financial adviser about your own position. The Gallery Real Estate Pty Limited, licence 10103433.

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