Rental Yield Summary
| Property Type | Median Price | Weekly Rent | Gross Yield | Net Yield (est) |
|---|---|---|---|---|
| Houses | $1,306,576 | $984/wk | 3.9% | 2.1% |
| Units | $697,455 | $616/wk | 4.6% | 3.1% |
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: $2215/year
- Insurance (landlord): $1,200-1,800/year
- Property management (7-8%): $3,837/year
- Maintenance allowance (1%): $13,065/year
- Vacancy (2-4 weeks/year): $2,952/year
Net annual income (house): $27,812 Net yield: 2.1%
Vacancy Rate
Current vacancy: 1.0%
Tight market – tenants compete for properties. Expect minimal vacancy between tenants.
How Richmond Compares
| Suburb | House Yield | Unit Yield |
|---|---|---|
| Richmond | 3.9% | 4.6% |
| Melbourne average | 3.2% | 4.1% |
| Toorak | 2.7% | 4.3% |
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: $64,806
- Annual rent: $51,168
- Cash flow position: Negative gearing of -${int(med_h * 0.8 * 0.062 - rent_h * 52 + med_h * 0.01 + 2000):,}/year (tax deductible)
For full investment analysis, see our Richmond investment guide.
Yield calculations based on REIV median prices and Domain/realestate.com.au rental listings for Q1 2026.
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