1. What is Rental Yield?

Rental yield is a measure of return on investment for a rental property, expressed as a percentage of the property's value. It helps investors compare the profitability of different properties.

2. How Does the Calculator Work?

The calculator uses the rental yield formula:

Where:

• \( Annual Rent \) — Total yearly rental income in dollars
• \( Purchase Price \) — Property purchase price in dollars

Explanation: The formula calculates what percentage of the property's value is earned back each year through rent.

3. Importance of Rental Yield Calculation

Details: Rental yield helps property investors assess investment performance, compare properties, and make informed purchasing decisions.

4. Using the Calculator

Tips: Enter annual rent and purchase price in Australian dollars. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is a good rental yield in Australia?
A: Generally, 5-8% is considered good, with regional areas often having higher yields than capital cities.

Q2: What's the difference between gross and net yield?
A: Gross yield uses total rent, while net yield deducts expenses like maintenance, taxes, and management fees.

Q3: Should I only consider yield when buying property?
A: No, also consider capital growth potential, location, and your investment strategy.

Q4: How does yield compare to ROI?
A: Yield shows annual return based on property value, while ROI considers your actual cash investment.

Q5: Do I need to include GST in the calculations?
A: Residential rents are typically GST-free in Australia, so no GST adjustment is needed.