Rental yield is one way to compare the rental income of a property with its value or purchase price. Use the calculator below to estimate gross yield, then consider the costs and circumstances that affect the property’s actual return.
Gross rental yield is generally calculated by multiplying the weekly rent by 52, dividing that annual rent by the property value or purchase price, and converting the result to a percentage.
For example, a property earning $600 per week produces annual gross rent of $31,200. If its value is $800,000, the estimated gross yield is 3.9%.
Gross yield does not account for rates, insurance, management fees, maintenance, vacancy, financing, tax, compliance work or capital improvements. Coastal properties may also have different maintenance requirements. Yield should therefore be considered alongside condition, long-term costs, tenant demand and your financial objectives.
The result is only as useful as the rent entered. Request a local rental appraisal if you need current guidance for a property in Russell or Okiato.
These results are estimates only and do not include lending costs, tax treatment, depreciation, vacancy risk beyond the allowance entered, or changes in market rent.