Ask an investor about a property and they'll usually quote its yield. Ask them whether that's gross or net, and you'll often get a blank look. The distinction matters enormously, because the gap between the two is where a property's real return lives. Here's how to understand rental yield properly — and what a good one looks like in Adelaide right now.
Gross yield: the headline number
Gross yield is the simple one: annual rent divided by the property's value, expressed as a percentage. A property worth $600,000 that rents for $540 a week collects $28,080 a year, for a gross yield of 4.7 per cent. It's a useful quick comparison between properties, and it's the figure most advertisements and agents quote — because it's the flattering one. But it ignores every cost of holding the property.
Net yield: the honest number
Net yield subtracts the annual costs of owning the property before dividing by the value: council and water rates, landlord insurance, maintenance, property management fees, and an allowance for vacancy. Those costs typically take one to one-and-a-half per cent off the gross figure. So a 4.7 per cent gross yield might be a 3.3 to 3.7 per cent net yield. Net is the number that actually reflects what the property returns you — and the one worth basing decisions on.
What's a good yield in Adelaide in 2026?
Across Adelaide, gross yields now average around 3.5 per cent — compressed by several years of strong price growth outpacing rents. But the citywide average hides a wide range. The inner and eastern suburbs, where prices are high, tend to yield below average; the middle-ring and northern suburbs yield materially more. Parts of Adelaide's north — Elizabeth, Davoren Park, Smithfield and surrounds — are still delivering gross yields around 5 to 5.5 per cent on lower entry prices, which is why yield-focused investors have been active there.
Yield isn't the whole story
A high yield is attractive, but it's only one half of an investment's return — the other half is capital growth, and the two often trade off against each other. Higher-yielding areas sometimes grow more slowly in value; lower-yielding blue-chip suburbs sometimes grow faster. The right balance depends on your strategy, your timeframe and your tax position. Adelaide's tight 0.7 per cent vacancy rate helps both sides of the equation by keeping quality properties leased and rents firm.
Getting your numbers right
Whether you're weighing a purchase or reviewing a property you already own, working out the true net yield — with realistic costs, not optimistic ones — is the foundation of a sound decision. We're happy to help you think through the rental side of the numbers for an Adelaide property, and our rental appraisals are grounded in real leased evidence rather than hopeful estimates. Just ask.
