Rental Yield Summary
| Property Type | Median Price | Weekly Rent | Gross Yield | Net Yield (est) |
|---|---|---|---|---|
| Houses | $1,155,705 | $1062/wk | 4.8% | 3.0% |
| Units | $663,281 | $701/wk | 5.5% | 4.0% |
Gross vs Net: The Real Numbers
Gross yield is what most headlines quote. Net yield is what you actually keep after costs.
Annual costs that eat your yield:
- Council rates: $2499/year
- Insurance (landlord): $1,200-1,800/year
- Property management (7-8%): $4,141/year
- Maintenance allowance (1%): $11,557/year
- Vacancy (2-4 weeks/year): $3,186/year
Net annual income (house): $32,839 Net yield: 3.0%
Vacancy Rate
Current vacancy: 1.2%
Moderate vacancy. Marketing time of 2-3 weeks between tenancies is typical.
How North Melbourne Compares
| Suburb | House Yield | Unit Yield |
|---|---|---|
| North Melbourne | 4.8% | 5.5% |
| Melbourne average | 3.2% | 4.1% |
| Toorak | 2.7% | 4.5% |
Above-average yields for an inner suburb – unusual and worth investigating.
Cash Flow Analysis
At current rates (6.2% variable), interest-only on 80% LVR:
- Annual interest: $57,322
- Annual rent: $55,224
- Cash flow position: Negative gearing of -${int(med_h * 0.8 * 0.062 - rent_h * 52 + med_h * 0.01 + 2000):,}/year (tax deductible)
For full investment analysis, see our North Melbourne investment guide.
Yield calculations based on REIV median prices and Domain/realestate.com.au rental listings for Q1 2026.
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