What is gross rental yield?

Gross rental yield is annual rent divided by property purchase price, expressed as a percentage. In Australia, residential yields typically range from 3-5% for houses in capital cities to 5-7% for units and regional properties. Higher yield often means lower capital growth potential.

Why is Y1 cashflow often negative on Australian property?

Interest costs on a typical 80% LVR loan usually exceed net rental income after holding costs, especially in the first years of ownership. This is called negative gearing. The loss offsets your other taxable income at your marginal tax rate, reducing your tax bill. Over time, as rent grows and the loan is paid down, cashflow typically turns positive.

What are typical holding costs on an Australian investment property?

Total holding costs typically run 20-25% of gross rent for houses and townhouses, 25-30% for apartments (higher strata fees). This includes vacancy (2-3%), property management (7-9%), council rates, water, insurance, repairs and maintenance, and land tax where applicable.

Residential quick-add

Model a residential investment in 60 seconds.

Weekly rent, vacancy, property management, interest, growth. The essentials to see if a residential deal stacks up before you commit to full DD. Purpose-built for Australian residential investors, using standard tier assumptions (4.2% house, 4.5% apartment, 5% townhouse).

Looking at a commercial property? Use the commercial calculator instead.

Inputs

Property + purchase

Purchase price $

Weekly rent $

Property type

State

Loan + interest

LVR %

Loan interest rate %

Loan type

Loan term yrs

Holding costs

Vacancy %

Property management %

Council + rates (annual) $

Insurance (annual) $

Repairs + maintenance (annual) $

Growth + rent trajectory

Annual capital growth %

Annual rental increase %

Ownership term yrs

The growth engine. Residential capital growth compounds over long holds. A property growing 6%/yr doubles in ~12 years. Cashflow is usually thin in the early years, then improves as rent compounds while the loan stays flat (interest-only) or shrinks (P+I).

Acquisition costs

Stamp duty (auto est.) $

Solicitor + valuation $

Building + pest + other $

Gross yield

4.1%

Annual rent / price

Y1 cashflow

-$8,320

After interest + holding

Cash-on-cash

-4.4%

Y1 return / cash in

Total cash in

$189k

Deposit + costs

End-of-term value

$1.40M

Y10 estimate

End-of-term equity

$776k

Value less loan

Value + equity trajectory

Residential compounds slowly then quickly. Look at where equity crosses your deposit line.

Property value Loan balance

Year 1 P&L breakdown

Gross annual rent$0

Less vacancy$0

Less property management$0

Less council + rates$0

Less insurance$0

Less repairs + maintenance$0

Less loan interest$0

Net Year 1 cashflow$0

How this compares

Your inputs plotted against typical Australian residential ranges. The dark line is the AU median. Numbers only. What that means for your decision is between you and your team.

Gross yield4.1%

Low 2%AU median 4.3%High 8%

Y1 cash-on-cash-4%

-10%Breakeven 0%+10%

Growth assumption6%

0%AU 20yr average 6.0%10%+

See the full 30-year picture

This calculator shows Y1 numbers. StratMap models 30 years of growth, tax (negative gearing + depreciation + CGT), portfolio interactions, and your income goal. Free.

The tool models. Not financial advice. Cashflow, yield, and end-of-term projections are estimates based on your inputs and standard assumptions (loan interest, growth, vacancy). Real transactions depend on tax position (negative gearing, depreciation), specific property condition, and finance approval. For full 30-year modelling under Australian tax, load your properties into the tracker.