Is 5% a good return on rental property?

A 5% gross yield is high for a growth property in today’s market (March, 2025). However, if you are purchasing a yield property, a 5% gross yield is low.

Is 8% a good rental yield?

8% is a very good rental yield, especially if buying a new build property. However, if you are renovating a property and calculating the gross yield off the original purchase price and renovations costs, then 8% is the minimum you should generally look for.

How do you calculate rental property return?

The best way to calculate the return on a rental property is to use our brand-new app Opes+, which you can register for here.To calculate the gross yield of a rental property, take the weekly rent, multiply it by 52 and then divide that number by the purchase price.

What's the median rent in my region?

If you want to find out what the median rent is in a certain region then head here: Median rents in NZ

What percentage is a good return on rental property?

Growth properties should have a gross yield rental return of at least 4%. Yield properties should have a gross yield rental return of between 5.5 – 6.5% (November 2024).

Rental yield calculator

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Ed McKnight

Our Resident Economist, with a GradDipEcon and over five years at Opes Partners, is a trusted contributor to NZ Property Investor, Informed Investor, Stuff, Business Desk, and OneRoof.

Ed, our Resident Economist, is equipped with a GradDipEcon, a GradCertStratMgmt, BMus, and over five years of experience as Opes Partners' economist. His expertise in economics has led him to contribute articles to reputable publications like NZ Property Investor, Informed Investor, OneRoof, Stuff, and Business Desk. You might have also seen him share his insights on television programs such as The Project and Breakfast.

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