Changes in gross yield

We take a look at our data over the last four years to examine trends in gross rental yield.

Understanding yield

Yield is an income return on investment.

To generate the gross rental yield, calculate the gross annual income of the property and divide it by the purchase price. 

When generating net yield, you'll need to take other expenses such as mortgage and rates into consideration. 

Changes in average three bedroom house price
  • With a decrease in the average three bedroom house price, we have seen an increase in the gross yield when compared to December 2016. 
Average rental and average price
  • Barfoot & Thompson manages in excess of 6,400 three bedroom rental properties, which in December 2017 had an average per-week rent of $548. This is up 4% on the year before. 
  • However, the average house price for the same period fell by 2% to $920,757.
  • Over the past several years, Barfoot & Thompson's average rental per week has increased at a steady rate of 4-6% per annum, whilst the average house price has shown much greater variances. The increase between 2014 and 2015 was 22%, and between 2015 and 2016 it was 11%.
Gross yield three bedroom Auckland properties
  • December 2017's yield increased to 3.09%, up from 2.93% in December 2016. This brings it back in line with December 2015.