Conveyancing, inspections
Rental Income & Expenses
Annual: $28,600.00
Rates, insurance, management, maintenance
Growth Assumptions
Total ROI
86.00%
Annualised ROI
8.60%
Total Return
$584,781.51
Cap Rate
2.71%
What is a good ROI on property?
There is no single answer, but most investors look for an annualised return above 7-8% when you combine rental income and capital growth. In practice, many Australian properties return 4-6% from rent alone, with capital growth making up the rest. Higher-risk regional areas may offer bigger yields but slower or less reliable growth.
What is cap rate?
Cap rate (capitalisation rate) is your net annual rental income divided by the purchase price. It shows the return from rent alone, ignoring capital growth. A higher cap rate means better cash flow. It is useful for comparing different properties side by side without guessing at future price changes.
How does leverage affect ROI?
If you use a mortgage, your actual cash invested is smaller than the full purchase price. This means the same dollar return produces a higher percentage ROI on your own money. However, leverage also increases risk -- if the property falls in value, your losses are magnified. This calculator shows the unleveraged return on total investment.
Note: This calculator uses simple appreciation and does not account for tax, loan interest, or inflation. Use our Landlord Rental Tax calculator for a detailed after-tax view.
Disclaimer: This calculator provides estimates based on current ATO rates and thresholds for the 2024–25 financial year. It does not constitute professional tax, financial, or legal advice. Your actual liability may differ depending on your individual circumstances. Always consult a qualified tax agent before making financial decisions. Read our terms
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