What is rental yield?
Rental yield is the difference you make on your investment property minus the costs associated with it.
Net rental yield is calculated by taking your rental income minus costs, then dividing by the property purchase price or market value. For example, ($41,600- $10,000) / $750,000 = 0.042 X 100 = 4.2%
There's no set benchmark for a good rental yield, but a higher yield (e.g. 8% and above) can offer stronger cash flow, whilst a lower yield (e.g. 4% and below), may offer lower cash flow but may have a better return on investment.
To help you find the right investment property, you should investigate property data on factors such as suburbs, price trends, and demographics in your target area.