Rental yield, worked out.

Gross yield is the easy number. This one takes rates, water, insurance, management and the loan out first, so you can see what a place actually returns each week.

Paying for a place that rents at a week?After costs .

At $650,000 renting for $550 a week: 4.40% gross yield, 2.74% net, you’d top up $278 a week.
$300,000$1,500,000+

Gross yield

4.40%

Net yield

2.74%

Cash flow

−$278/wk

Over a year

−$14,455

That’s a 4.40% gross yield, or 2.74% once running costs come out. You’d cover $14,455 a year yourself: $9,715 to hold it, plus $32,240 in interest.

Every 0.5% on the rate is about $2,600 a year, and every $10 a week of rent is $520.

Where a year’s rent goes

Every figure is yours to change

Rent collected$28,600
Vacancy, 2 weeks a year$1,100
Council rates $2,200
Water $1,200
Insurance $2,000
Body corporate $0
Maintenance $2,500
Anything else $0
Management, of rent$1,815
Interest on at $32,240
Short each year−$14,455

Urbnest manages for 6.6%, all in — no letting fee, no admin extras.

Interest only, at the rate shown — loan principal, depreciation and tax aren’t counted. Two weeks a year are held back for vacancy. Every figure here is one you can change. It’s a guide, not financial advice.

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Yield calculator