Rental Yield
Annual rent as a percentage of property value. Gross or net.
What is Rental Yield?
Rental yield is the annual rental income of an investment property as a percentage of the property's value. Gross yield is rent divided by price. Net yield subtracts ongoing costs (rates, strata, maintenance, insurance, management) from rent first.
Why it matters for you
A $30K annual rent on a $600K property = 5% gross yield. That might be 3.5% net after costs. Australian markets typically range 2.5–6% gross. High-yield markets are usually lower-growth; low-yield markets often higher-growth. The right yield depends on your strategy, not on an abstract benchmark.