How to Work Out Rental Yield for Australian Property Investors
Understanding Rental Yield Fundamentals Rental yield is the annual income of an investment property compared to its value, expressed as a percentage return for investors. There are two ways to calculate: gross yield for quick comparisons and net yield for accurate profitability. Australian property investors use rental yield to compare opportunities, set realistic expectations and make informed buying decisions. What is Rental Yield and Why Every Property Owner Should Know Learn the fundamentals and strategic importance of rental yield calculations for successful Australian property investment portfolio management. Definition and Core Concept for Property Investing Rental yield is how much income your investment property generates compared to its value. It’s a percentage that shows your annual return on property investment. Think of it like a bank term deposit. If you invest $100,000 and earn $4,000 per year, that’s a 4% return. Rental yield works the same way for investment property. ...