Question 1

What is a good rental yield in Australia?

Accepted Answer

A good gross rental yield in Australia is generally considered to be 4–6%. Net yields of 3–5% are considered solid. Capital city houses often yield 2–4%, while units and regional properties can yield 5–7% or more.

Question 2

What is the difference between gross and net rental yield?

Accepted Answer

Gross yield is calculated using total annual rent divided by the purchase price. Net yield deducts annual expenses (rates, insurance, management fees, maintenance, strata) from the rental income before dividing by the purchase price.

Question 3

Does rental yield include mortgage repayments?

Accepted Answer

No. Rental yield is calculated before mortgage costs. It measures the property's income return independent of how it is financed. To assess cash flow after the mortgage, subtract your annual loan repayments from the net rental income.

Question 4

How do I increase my rental yield?

Accepted Answer

You can increase yield by raising rent (renovations, adding features), reducing expenses (shopping around for insurance, self-managing), or buying at a lower price. Cosmetic renovations like fresh paint, new flooring, or updated kitchens can justify higher rents.

Question 5

Should I prioritise yield or capital growth?

Accepted Answer

It depends on your strategy. High-yield properties provide better cash flow and are easier to hold. High-growth properties build wealth faster over time but may cost more to hold. Many investors aim for a balance of both.

Rental Yield Calculator (2026)

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Frequently asked questions

What is a good rental yield in Australia?

What is the difference between gross and net rental yield?

Does rental yield include mortgage repayments?

How do I increase my rental yield?

Should I prioritise yield or capital growth?

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