Gross Yield vs Net Yield Explained for Apartment Sellers
When selling an investment apartment, unit, or villa unit in Victoria, many owners (and agents) focus on gross yield—but savvy investor buyers look closer at net yield.
Gross Yield: Annual rent divided by purchase price. This is a quick headline number that ignores ownership costs.
Net Yield: Annual rent, minus annual expenses (owners corp fees, insurance, rates, etc.), divided by purchase price. This is truer to what buyers receive in their pocket.
Why Net Yield Matters to Investors:
- Building Comparison: Two apartments might have similar rent, but after fees, one is a better investment.
- High Fees Aren’t Always Bad: If higher fees deliver higher net yield (because the rent is strong, tenant is secure, or amenities are better), the property may still compete.
- Transparency Sells: Genneva Smarrelli has built deals by showing buyers the honest, net yield story upfront—especially for high-levy or small properties ignored by others.
Want clear guidance on how your apartment’s yield story will play with investors? Contact Collings Real Estate for transparent, investor-focused advice.
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