What is a good rental yield in Sydney in 2026?

In Sydney, a gross rental yield of 3–4% is typical for established suburbs like Rockdale and Brighton-Le-Sands. A yield of 4–6% is considered strong. Net yield (after all expenses such as rates, insurance, strata, and management fees) is usually 1–2% lower than gross yield. Yields above 6% are rare in Sydney and often indicate higher-risk outer suburbs or regional areas.

What is the difference between gross yield and net yield?

Gross yield is annual rent divided by property value, expressed as a percentage. Net yield subtracts all annual expenses (council rates, insurance, strata, maintenance, property management fees, and vacancy allowance) from the annual rent before dividing by property value. Net yield is a far more accurate measure of your real return.

What is cash-on-cash return?

Cash-on-cash return measures your annual pre-tax cash flow relative to the actual cash you have invested (deposit plus purchase costs like stamp duty and legals). Unlike yield, it factors in your leverage. A $100k deposit generating $5k in annual cash flow equals a 5% cash-on-cash return, regardless of the property’s total value.

How do I calculate gross rental yield?

Gross rental yield = (Weekly rent × 52 ÷ Property value) × 100. Example: $650 weekly rent × 52 weeks = $33,800 annual rent. Divided by $800,000 property value = 4.23%. This is a useful headline figure but ignores expenses — always check net yield too.

What expenses should I include when calculating net yield?

Include all ongoing ownership costs: council rates (typically $1,500–$2,500/yr in St George), building insurance ($1,000–$1,500/yr), strata fees if applicable ($2,000–$5,000/yr for units), maintenance reserve (1–1.5% of property value), property management fees (5–8% of rent), and vacancy allowance (typically 2 weeks of rent per year).

Is a high rental yield always better?

Not necessarily. High-yield properties (6%+) often have lower capital growth potential — common in regional or outer-suburban areas. Sydney’s blue-chip suburbs like Brighton-Le-Sands and Rockdale typically deliver 3–4% yield with strong long-term capital growth. The right balance depends on your strategy: cash flow (higher yield) versus equity growth (lower yield, higher capital gains).

What rental yield do houses vs units achieve in St George?

In the St George area (2216, 2217, 2218, 2205 postcodes), houses typically yield 2.8–3.5% gross, while units yield 3.8–4.8% gross due to lower purchase prices. However, houses generally outperform on capital growth over 10+ year holding periods. Always calculate net yield including strata — strata levies can cut unit net yield by 1–1.5%.

Is this property yield calculator free to use?

Yes. The Property Yield Calculator is 100% free with no signup, no email capture, and no ads. It is provided by Michael Kalinovski, a licensed NSW real estate agent with Century 21 Bayview (Licence 20376879), as a free resource for Sydney investors.

Property Yield Calculator

Calculate gross yield, net yield, and cash-on-cash return for your investment property

Property Details

Property Value

Current market value or purchase price

Deposit / Cash Invested

Your cash contribution (typically 20%)

Rental Income

Weekly Rent

Expected weekly rental income

Vacancy Weeks (per year)

Average vacancy between tenants

Annual Expenses

Council Rates (annual)

Typically $1,500 - $3,000/year

Insurance (annual)

Landlord insurance: $800 - $2,000/year

Strata Fees (annual)

$0 for houses, $2,000 - $6,000+ for units

Maintenance (annual)

Rule of thumb: 1% of property value

Property Management

Management Fee (%)

Est. $2,275/year based on rental income

Gross Yield

4.23%

Net Yield

2.78%

After all expenses

Cash-on-Cash

11.58%

Return on your cash

Annual Cash Flow

$22,225

$1,852/month • $427/week

Income vs Expenses

Net Income68%

Total Expenses32%

$22,225

$10,275

Yield Benchmark

Bank Term Deposit~4.5%

Your Net Yield2.78%

Your Cash-on-Cash11.58%

Annual Summary

Gross Annual Rent$33,800

Less Vacancy (2 weeks)-$1,300

Effective Rental Income$32,500

Council Rates-$1,800

Insurance-$1,200

Strata Fees-$3,000

Maintenance-$2,000

Management (7%)-$2,275

Net Annual Cash Flow$22,225

Cash Invested

Deposit$160,000

Est. Stamp Duty (~4%)$32,000

Total Cash Invested$192,000

This calculator provides estimates only. It doesn't include mortgage interest, tax implications, or capital growth. Consult a financial advisor for comprehensive investment analysis.

Next step· Net yield 2.78% · Gross 4.23%

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