Rental Property Calculator Australia Real Estate

Rental Yield Equation:

\[ \text{Rental Yield (\%)} = \left( \frac{\text{Annual Rent (AUD/year)}}{\text{Property Value (AUD)}} \right) \times 100 \]

Rental Yield:

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1. What is Rental Yield?

Rental yield is a key metric used by property investors to assess the performance of a rental property. It represents the annual rental income as a percentage of the property's value.

2. How Does the Calculator Work?

The calculator uses the rental yield equation:

\[ \text{Rental Yield (\%)} = \left( \frac{\text{Annual Rent}}{\text{Property Value}} \right) \times 100 \]

Where:

Annual Rent — Total yearly rental income in AUD
Property Value — Current market value of the property in AUD

Explanation: The equation calculates what percentage of the property's value you earn back each year through rent.

3. Importance of Rental Yield Calculation

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

4. Using the Calculator

Tips: Enter annual rent in AUD/year and property value in AUD. 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, but this varies by location and property type.

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

Q3: How often should I calculate rental yield?
A: It's good practice to recalculate whenever rent changes or property values are reassessed.

Q4: Does this calculator account for vacancies?
A: No, this calculates gross yield. For more accuracy, you may want to adjust for expected vacancy rates.

Q5: Should I only consider yield when investing?
A: No, also consider capital growth potential, location, and your investment strategy.