When it comes to blocks of units, “What’s a good yield?” is the first question on most serious investors’ lists. Simon Abbott offers a specialist perspective: it depends entirely on the block’s location, tenant profile, maintenance, risk, and future upside—but there are clear guideposts.

Gross vs Net Yield: The Difference

• Gross Yield: Annual rental income ÷ purchase price. Investors often focus here as the basic hurdle.
• Net Yield: Annual rent minus outgoings (rates, insurance, maintenance, management, utilities split) ÷ purchase price. Net yield is the true cash flow: what investors actually bank after costs.

What’s Typical for Blocks in Victoria (2026)

Simon’s network sees blocks trade at gross yields of 5.5–7.5%, with some regional and higher-risk locations (older, less gentrified) in the 8%+ range. Blue-chip Metro: 4.5–5.5% is common, but with lower risk and higher capital stability.

Net yield, after all outgoings, is usually 1–1.5% lower than the gross number. A well-run block should clear 5% net in today’s market to be seriously considered as an investment.

Yield vs Growth: How to Weigh Them

• Blocks in fast-growth areas trade on lower yield but have more capital upside.
• Older, stable cash-flow blocks (with minor upside available) attract the cashflow-first investors—those are Simon’s specialty.

Scenario: Real-World Result

Simon moved a buyer from multiple houses returning 3.9% gross to a well-tenanted block showing 7.2% gross, 5.9% net—$17k per year net improvement on similar value.

But: Ensure you understand the tenancy risk, capex outlook, and local vacancy before fixating on yield.

Want a block-by-block yield assessment or ready to see live Victoria numbers?
Simon will provide a current-market comparison any time: collings.com.au/portal