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It's the old "you've got to compare apples to apples" thing, it's no good looking at one area where the average yeild is 2.5% and comparing a property there to one in an area where the average yield is 7%, so if you found a property with a yeild of 5% it would be a good rental yield in the 2.5%...

The formula for this is: House value = $500 k Rent wk = $350 3.64% (yeild) = (350 (rent) x 52 (weeks)) \ 500,000 (house price) So for the suburb / area the house is in do the other houses get around 3.64% yeild? If most other houses get a higher yeild making yours an IP is a bad idea, if most...