What Is a Good Rental Yield and What’s the Average in Brisbane?
Investing in property is an appealing venture for most, especially in Brisbane. However, success with an investment property requires an understanding of key metrics such as rental yield. Did you know that the average gross rental yield for houses in Brisbane is 3.7%, while for apartments, it stands at 5.2%? Understanding rental yield allows you to assess the profitability of an investment property. In this post, we will explain what a rental yield is, how it’s calculated, what a good rental yield looks like and factors that can impact rental yield. What Exactly Is Rental Yield? Rental yield is a financial metric used by investors to evaluate the return on investment (ROI) generated from a property. It represents the annual rental income generated as a percentage of the property’s value. Essentially, rental yield is the amount of rental income you can expect from your investment property. It’s the profit you make after covering property expenses. Understanding rental yield can help you set investment goals and find ways to improve your property’s performance. Plus, it gives you an idea of your property’s future selling potential. A good rental yield ensures steady cash flow and a favourable return on investment, making it