Worked example
A property purchased for $650,000 and renting at $580 per week produces $30,160 annual rent. Gross yield is $30,160 divided by $650,000, or 4.64%. If annual costs total $14,272, net income is $15,888 and net yield is 2.44%. This is an illustration, not a forecast.
Why the gap matters
Gross yield is useful for quickly comparing listings, but it does not show the cost structure of the property. Net yield forces rates, insurance, management fees, maintenance, strata or body corporate costs and vacancy allowance into the comparison.
Costs often omitted
Land tax where applicable, strata fees, vacancy risk and higher maintenance on older properties can materially change the result. Financing costs and tax treatment are assessed separately and depend on the buyer's circumstances.
- Show gross and net figures side by side.
- Keep every assumption visible.
- Use professional advice for tax, lending and legal decisions.
Where YieldFrame fits
YieldFrame is a local calculator for comparing residential purchase scenarios with visible, editable assumptions and gross-versus-net views. It supports analysis; it does not provide financial advice or guarantee an investment outcome.