Buying a rental property in Brisbane can be a smart way to grow your income and build long-term wealth.
But not every property will be a good investment. Before you buy, it’s important to understand how to assess whether a property is likely to deliver the returns you’re hoping for.
Here are three key things to focus on.
Check the Cash Flow
Cash flow is the money left over after you pay all the expenses related to the property. A positive cash flow means the rent covers the costs and puts money in your pocket. A negative cash flow means you'll need to cover the shortfall yourself.
Start by estimating how much rent the property can earn each week. Then subtract the ongoing costs, such as:
• Loan repayments (interest and principal)
• Council rates and water charges
• Landlord insurance
• Property management fees
• Maintenance and repairs
• Body corporate fees (if it’s a unit or townhouse)
• A vacancy buffer (allow for a few weeks per year with no tenant)
Also consider seasonal costs common in Brisbane, like air conditioning servicing and pest control. If your rent income is higher than your total costs, that’s a strong sign the property could be a good investment.
Calculate the Rental Yield
Rental yield helps you understand how much return you’re getting from the rent, compared to the price you pay for the property.
Gross yield is a quick way to compare properties:
(Annual rent ÷ Purchase price) × 100
For example, a property that rents for $30,000 a year and costs $600,000 to buy has a gross yield of 5%.
In Brisbane, gross yields typically range from:
• 4%–5% for houses
• 5%–6.5% for units, especially in higher-demand suburbs
You can also calculate net yield by subtracting yearly expenses from the rent first. While yield is important, don’t rely on it alone — a high yield in a risky or low-growth area might not be worth it in the long run.
Understand the Location and Strategy
The suburb you buy in can affect both rental income and long-term value. Look for areas with:
• Low vacancy rates (under 2%)
• Good access to schools, transport, shops, and jobs
• Planned infrastructure or development
• Strong rental demand (students, families, professionals, etc.)
Suburbs like Oxley, Chermside, and Carindale have seen rising interest due to their location and connectivity, while areas like Spring Hill and Goodna have higher rental yields.
Also, think about your investment strategy. Some buyers aim for positive cash flow, while others use negative gearing — a strategy where the property costs more than it earns, and the loss is claimed as a tax deduction. This can work well if you're in a high-income bracket and the property is likely to grow in value over time, but it does mean covering a shortfall until then.
Ready to Invest?
Assessing a property properly takes more than just crunching numbers — it takes local knowledge.
Contact our expert property management team today for a free rental appraisal and personalised insights into Brisbane’s rental market. We’ll help you understand what your target property could earn, what expenses to expect, and which suburbs offer the best returns right now.
Get in touch today and make your next property investment a confident one.
