Tools & Advice   Buyer's Guide   Ensuring a healthy rental yield

Ensuring a healthy rental yield

Published on 18 Jul 2017 by EMILY Long

Ensuring a healthy rental yield

To predict whether an investment property will generate a healthy yield, property investors often rely on the current average vacancy rates/rental yields and their historical trends.  

A healthy yield is especially important for first time investors that are more affected by cash flow.    

If we look at Melbourne, the overall vacancy rate is around 2.2% with plenty of suburbs much higher than this right now (Docklands, Southbank etc), but a popular suburb such as Malvern has a vacancy rate around 1.79% where an average a house will fetch $750 and a unit $410 per week in rent. (July 2017 - realestateinvestar).

Understanding these statistics allow a quick comparison between suburbs which investor can use to assess which areas present the best buying opportunities.

On further analysis we can find other important factors at play including affordability issues and what are the in-demand amenities tenants require. For example, an investor could purchase a strata property next to an employment hub such as a hospital. Here you will have a tenant pool hard to match with hundreds of staff working long shifts and on-call once home ensuring ongoing demand for quality accommodation within walking distance.  

These tenants are also time poor and do not want to mow lawns so a strata property would fill this demand perfectly and ideally a new property due to requiring less maintenance, which will also reduce costs.  

Conducting thorough research on the location and how the property will suit the local tenant’s requirements will ensure your investment property not only meets the suburb’s benchmark but possibly out-perform it. 

To find out more about ensuring your investment property has a healthy yield, get in touch with the iBuyNew team today by callins us on 1300 123 463.


Emily is one of our friendly agents who can assist you with your all important off the plan property purchase in Melbourne, Sydney and Brisbane.

Did you like this article?

Sign up to the iBuyNew newsletter to receive more articles and property news straight to your inbox.

Related Articles

  • EMILY Long

    Why Do I Need Landlord’s Insurance?

    21 May 2013 - You take out insurance for your car, health and home. So why not on your investment property?

  • EMILY Long

    Comparing Apples with Apples

    22 May 2013 - Property prices are some of the most difficult numbers to pin down when comparing between two different properties as both are entirely unique. Try iBuyNew’s comparison checklist here for a comprehensive list of factors that should help you compare properties for yourself.

  • EMILY Long

    What Are Sunset Dates?

    18 April 2013 - When purchasing any property off plan, be it apartments or a house and land package, the contract will have what is called a Sunset Date. The Sunset Date is the day by which the developer is able to fulfil their obligations as stipulated in the contract.