This New Zealand calculator compares the net rental yield of an investment property against the return from a term deposit, on a like-for-like after-cost basis. You enter the property price, rent and costs, and the term deposit rate, and it shows which delivers more income return, helping investors weigh property against a simpler, lower-effort alternative.
This compares income return only. Property also offers potential capital growth and can use leverage, while a term deposit is simpler and lower effort. Both are taxed. Net yield uses rent less running costs, which is fairer than gross. Estimate only, not financial advice.
The calculator works out your net rental yield as the annual rent less running costs, divided by the property price, as a percentage. It compares that against the term deposit rate you enter. This is a like-for-like income comparison, before tax and before any capital growth on the property, which lets you see how the property income return stacks up against a simple, low-effort alternative.
A $700,000 property renting at $650 a week earns $33,800 a year. Less $9,000 of costs, the net rent is $24,800, a net yield of about 3.5%. Against a 5% term deposit, the deposit gives a higher income return, though the property may also gain in value over time, which this does not count.
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