Gross rental yield is the annual rent divided by the property price — a quick comparison metric. A 4% gross yield on a $600,000 property means $24,000/year in rent. Net rental yield subtracts all expenses (rates, insurance, management, maintenance) from the rent before dividing by the purchase price, giving a more realistic picture.

Capital growth is typically the main driver of property investment returns. Australian capital cities have historically averaged 5-7% annual growth, though this varies significantly by location and period. A property growing at 5%/year on a $600,000 purchase would be worth approximately $977,000 after 10 years.

For the tax impact of holding an investment property, use our Negative Gearing Calculator. To estimate your CGT when you sell, try the Capital Gains Tax Calculator.