- Property listing URL β the Domain or realestate.com.au page with the full listing details, photos, and floor plan
- Asking price (or price guide) β if the listing says "offers above $600,000" or "price guide $580,000 - $620,000", use the midpoint
- Estimated weekly rent β check comparable rentals on [Domain](https://www.domain.com.au) or [realestate.com.au](https://www.realestate.com.au) for similar properties in the same suburb (same bedroom count, similar condition)
- Suburb name β you will need this to look up growth data and red flags
Gross Rental Yield
Gross Rental Yield = (Weekly Rent x 52) / Purchase Price x 100
Yield Benchmarks
- Below 3.5% β low yield. The property needs strong capital growth to justify the investment. Expect negative cash flow.
- 3.5% to 5% β moderate yield. Common in metropolitan areas with balanced growth and income characteristics.
- Above 5% β strong yield. Often found in regional centres or outer suburbs. Check that the high yield is not masking poor growth prospects.
Virtual Buyers Agent handles this automatically.
See how it works Cash Flow Ranges
- Positive cash flow β rare in capital city markets but possible in regional areas or with higher deposits. A strong starting position.
- Mildly negative ($50-$150/wk) β common and manageable for most investors with stable income. Tax deductions (depreciation, interest) often reduce the real cost.
- Heavily negative (>$200/wk) β proceed with caution. The property needs significant capital growth to justify the holding cost.
Cash Flow Sustainability
Make sure you can sustain any weekly shortfall for 3 to 5 years minimum. A detailed analysis would factor in vacancy periods, strata levies, water rates, and land tax.
Days on Market Guide
- Under 30 days β strong demand, seller's market
- 30-60 days β balanced market
- Over 60 days β weaker demand, worth investigating why
Virtual Buyers Agent handles this automatically.
See how it works Property Red Flags
- Flood or bushfire overlays β check your local council's planning maps. Properties in designated overlay zones may face higher insurance premiums, lending restrictions, and reduced buyer pools at resale.
- High strata/body corporate fees β for units and townhouses, strata levies above $5,000-$6,000 per year eat directly into your cash flow. Check if a special levy is planned.
- Unusual zoning β is the property zoned residential, or is it mixed-use, industrial-adjacent, or subject to heritage overlays? Non-standard zoning can limit renovations and affect value.
- High vacancy rates β if the suburb vacancy rate is above 3-4%, there may be an oversupply issue.
- Price growth significantly above median β if the suburb's prices have spiked 20-30% in a single year, that pace is unlikely to sustain. You may be buying at the peak.
- Contamination or easement issues β former industrial sites, properties near petrol stations, or those with major easements crossing the block can present issues.
Virtual Buyers Agent handles this automatically.
See how it works - Yield: Is the gross yield above your minimum threshold? (For most investors, 3.5% or above.)
- Cash flow: Can you comfortably sustain the weekly out-of-pocket cost for 3 to 5 years?
- Growth: Does the suburb show consistent historical growth and positive demand indicators?
- Red flags: Are there any deal-breakers, or only manageable issues you can investigate further?
- Comparison: Does this property rank favourably against your other added options?
- Gathered listing URL, asking price, estimated rent, and suburb name
- Calculated gross rental yield β is it above 3.5%?
- Estimated rough weekly cash flow β can you sustain the holding cost?
- Checked suburb median price history (5-year trend)
- Reviewed population growth and infrastructure projects
- Checked days on market for the suburb
- Searched for flood/bushfire overlays on council planning maps
- Checked strata fees (if applicable)
- Verified zoning is standard residential
- Checked suburb vacancy rate β is it below 3-4%?
- Looked for unusual price spikes in the suburb
- Compared property against 2-3 alternatives
- Made preliminary pass/fail decision
- If pass: added to pipeline for checks
Checks Scaling
The more money at stake, the more thorough your analysis should be. A $400,000 unit in a well-understood suburban market warrants a different level of scrutiny than a $1.2 million house in an unfamiliar area.
