Gross Yield

Plain-English definition. Gross yield is the annual rental income from a property expressed as a percentage of the property's value, before deducting any expenses. It's a quick comparison metric for investment property income.

How it works in Australia. Calculated as: (weekly rent × 52) ÷ property value × 100. CoreLogic and Domain publish suburb-level gross yield data monthly. Australian gross yields are notoriously low by international standards: capital city houses typically yield 2.5–3.5% gross, units 3.5–4.5%, regional areas 4.5–6.5%. This compares poorly with the US (5–8% gross) or parts of the UK and Europe — Australian property is priced for capital growth, not income.

Concrete example. A Brisbane investment unit purchased for $560,000 rents at $560 per week. Annual rent: $560 × 52 = $29,120. Gross yield: 5.2%. A comparable Sydney unit at $850,000 renting for $700/week has a gross yield of just 4.3%. The Sydney unit might still be the better long-term investment if its capital growth outpaces Brisbane — but on income alone, Brisbane wins.

Common confusion. Gross yield ignores all costs — it makes properties look more profitable than they are. A 5% gross yield easily becomes a 2.5–3% net yield once you deduct rates, insurance, property management (7–8% of rent), maintenance, strata, and vacancy. Always compute net yield for a real comparison.