Gross rental yield
Gross yield is the simplest measure of return — annual rental income as a percentage of the purchase price, before any costs.
For example, a property purchased for $700,000 renting at $600/week has a gross yield of 4.46%.
Net rental yield
Net yield deducts annual ownership costs from rental income before calculating the return. It gives a more accurate picture of actual investment performance.
Expenses include rates, insurance, property management fees, maintenance and a vacancy allowance. Our calculator allows full customisation of each expense.
Weekly cash flow
Cash flow is the net weekly surplus or deficit after rental income, mortgage repayments and all operating expenses are accounted for.
A positive figure means the property is self-funding. A negative figure means the investor is topping up from their own income.
Loan-to-Value Ratio (LVR)
LVR measures your mortgage as a percentage of the property value. The RBNZ sets LVR restrictions for NZ banks.
Owner-occupiers are generally limited to 80% LVR (20% deposit). Investors require a 35% deposit (65% LVR max).
Full methodology documentation coming soon
We're expanding this page to cover market rent estimates, seismic scoring, walkability calculations and demographic indexing. Questions in the meantime? Contact us.