Understanding The Core Metrics That Drive Investment Apartment Decisions
When selling a unit or apartment to an investor, it’s easy to fixate on headline “gross yield”—annual rent divided by purchase price. But that misses the true economics. Genneva Smarrelli, off-market property specialist at Collings, works with Victoria-wide investors who dig deep into net return, not just rent.
What is Gross Yield?
- Gross yield = annual rent ÷ purchase price
- No expenses or holding costs factored in.
- Often overstates true profitability—especially for apartments/units with high running costs.
What is Net Yield?
- Net yield = (annual rent − annual expenses) ÷ purchase price
- Expenses include body corp/OC fees, levies, rates, insurance, predicted vacancy, maintenance, management fees.
- Much closer to true investor return.
Why Does Net Yield Often Matter More To Investors?
- Two units in the same complex may have similar gross yields but wildly different running costs.
- High fees or special levies can turn a “yield winner” into a deal breaker very quickly.
- Astute buyers compare net yield across multiple options—especially in 2026’s cautious lending/borrowing climate.
Genneva’s Investor Sale Process
- Obtain all holding cost info up front (body corp statement, rates, maintenance).
- Vet all marketing materials for full-footprint accuracy: every dollar and percent shown.
- Make sure sellers understand the net return and are ready to be transparent with buyers from the start.
- Match the property to buyers whose investment profile fits the real-life returns, not just the asking price or broad market “yield averages.”
If you’re ready to understand the true yield on your investment property—or want a specialist opinion before selling—reach out to Genneva Smarrelli and the Collings Off-Market team for a pricing and yield analysis.
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