Glossary · Australian property
Gross yield.
Annual rent divided by purchase price, before any costs are subtracted.
Gross yield is the simplest yield calculation: annual rent ÷ purchase price, expressed as a percentage. It ignores all holding costs (council rates, water, insurance, strata, management fees, maintenance) plus loan interest and tax effects.
It's a useful headline number for comparing properties at a glance, but it overstates real cashflow by typically 1–2 percentage points. A 5% gross yield often becomes a 3% net yield once costs land.
Worked example
$650,000 purchase × $560/week rent = $29,120 annual rent. Gross yield = 29,120 ÷ 650,000 = 4.48%.
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