Rental Yield Summary
| Property Type | Median Price | Weekly Rent | Gross Yield | Net Yield (est) |
|---|---|---|---|---|
| Houses | $494,160 | $380/wk | 4.0% | 2.2% |
| Units | $291,726 | $285/wk | 5.1% | 3.6% |
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: $1756/year
- Insurance (landlord): $1,200-1,800/year
- Property management (7-8%): $1,482/year
- Maintenance allowance (1%): $4,941/year
- Vacancy (2-4 weeks/year): $1,140/year
Net annual income (house): $8,696 Net yield: 2.2%
Vacancy Rate
Current vacancy: 2.3%
Moderate vacancy. Marketing time of 2-3 weeks between tenancies is typical.
How Reservoir Compares
| Suburb | House Yield | Unit Yield |
|---|---|---|
| Reservoir | 4.0% | 5.1% |
| Melbourne average | 3.2% | 4.1% |
| Box Hill | 3.3% | 3.8% |
Solid middle-ring returns that balance yield with capital growth potential.
Cash Flow Analysis
At current rates (6.2% variable), interest-only on 80% LVR:
- Annual interest: $24,510
- Annual rent: $19,760
- Cash flow position: Negative gearing of -${int(med_h * 0.8 * 0.062 - rent_h * 52 + med_h * 0.01 + 2000):,}/year (tax deductible)
For full investment analysis, see our Reservoir investment guide.
Yield calculations based on REIV median prices and Domain/realestate.com.au rental listings for Q1 2026.
💬 Discussion
Join the conversation — no account needed