What is rental yield? Annual rent divided by property price — but the number that matters is after rates, insurance, maintenance, and empty weeks.
What does Auckland look like?
High prices, moderate rents. Gross yields often sit low. Many investors bet on prices rising over years, not cash in the bank today. Tight cash flow is common unless you bought long ago.
What about Christchurch?
Yields can look stronger on paper. But insurance history, older stock, and local job markets vary street by street. A suburb headline does not tell you about your specific house.
How do you compare fairly?
- Realistic rent minus vacancy — not the best month on Trade Me.
- Full rates and insurance quote for that address.
- Mortgage at today’s rate — then stress-test +2%.
When is yield the wrong question?
When you plan to live in the property later, or when tax rules and interest deductibility change your real return. Run the numbers with an accountant, not a barbecue opinion.
