Rental yield is one of the most quoted numbers in property investment — and one of the most misunderstood. It tells you how much income your property generates relative to its value. But the headline gross yield number hides a lot: management costs, vacancy, holding expenses, and the difference between what a standard lease delivers versus what a more structured income model can achieve.
This article breaks down what rental yields actually look like across Brisbane, why they vary so significantly by location, and how co-living changes the equation.
Gross Yield vs Net Yield
Gross yield is the simple calculation: annual rental income ÷ property value × 100. A property worth $700,000 renting for $550 per week ($28,600 annually) has a gross yield of 4.09%.
Net yield deducts the costs of holding the investment before dividing by property value — management fees, landlord insurance, rates, maintenance, and vacancy periods. On a standard Brisbane residential investment, net yield is typically 1–1.5% lower than gross yield. So that 4.09% gross property might deliver 2.6–3.1% net after expenses.
When comparing properties or investment models, always compare on the same basis — gross to gross, net to net. Mixing them produces misleading conclusions.
Brisbane Yield Benchmarks by Ring
Brisbane's yield profile is strongly influenced by proximity to the CBD and employment centres:
- Inner ring (0–10km): Gross yields typically 2.5–3.5%. High purchase prices are driven by lifestyle demand — walkability, amenity, employment access. Rents don't keep pace with the capital growth premium baked into prices.
- Middle ring (10–20km): Gross yields typically 3.5–4.5%. Better balance of purchase price to achievable rent. Strong rental demand driven by families and professionals priced out of the inner ring.
- Outer corridors (20km+): Gross yields typically 4.5–6%. Lower purchase prices relative to rents. Trade-off is lower capital growth expectations and longer vacancy periods in some pockets.
Why Brisbane Yields Are Lower Than Logan or Ipswich
The yield gap between Brisbane and its outer suburbs (Logan, Ipswich, Moreton Bay) comes down to the price-to-rent ratio. Brisbane's middle and inner-ring suburbs carry a significant capital growth premium — buyers have historically paid up for the expectation of appreciation, accepting a lower yield as the cost of entry.
In Logan or Ipswich, purchase prices are lower without rents being proportionally lower. A 3-bedroom home in Logan that rents for $480 per week might be purchased for $520,000 — a gross yield of around 4.8%. An equivalent rental income in an inner Brisbane suburb could be attached to a $750,000+ asset — a gross yield of 3.3%.
Neither is inherently better — it depends whether you're optimising for yield, growth, or both.
How Co-Living Changes the Yield Profile
Co-living — also called rooming accommodation or house of multiple occupancy (HMO) — leases individual rooms rather than the whole property. A 4-bedroom home that might rent whole for $550 per week could potentially generate $800–$1,100 per week with individual room leases, depending on location and configuration.
The maths changes significantly. That same $700,000 property generating $900 per week in a co-living arrangement produces a gross yield of approximately 6.7% — compared to 4.09% on a standard whole-property lease. On a higher-priced inner-ring property, co-living can push gross yields that would otherwise sit below 3% up into the 5–7% range.
The trade-off: co-living requires more active management — multiple tenants, higher maintenance, regulatory compliance (QLD requires registration as a rooming accommodation provider). Self-managing is not straightforward.
Eleva's property income model delivers above-market yield — without self-managing tenants.
Explore the income model →The Management Trade-Off
A higher gross yield only improves your financial position if you can sustain it. Co-living properties with poor management — high vacancy, difficult tenants, deferred maintenance — can underperform a well-managed standard rental despite the headline yield advantage.
The key variables are occupancy rate, management cost, and maintenance frequency. A professionally managed co-living property with 90%+ occupancy and efficient maintenance will outperform a poorly managed one with the same room count by a significant margin.
Eleva's Property Income Model
Eleva manages the full co-living operation — tenant sourcing, compliance, maintenance, and day-to-day management. You receive a predictable, above-market return without self-managing multiple tenants or navigating the regulatory complexity yourself. Learn more about the property income model and how it works for Brisbane property owners.