How do you calculate gross yield for a house and land package?

To calculate the gross rental yield for a house and land package, use this simple formula:

Gross Yield=(Purchase PriceAnnual Rent​)×100

Example Calculation:

Let’s say:

• Weekly rent = $550
• Total package price (land + build) = $650,000

Notes:

• Gross yield does not account for expenses like council rates, insurance, maintenance, vacancy, or property management fees.
• For net yield, you'd deduct all these costs before dividing by the purchase price.
• Builders and marketers often promote gross yield because it’s simpler and appears higher.