5 numbers every property investor needs to know

the difference between a successful property investor and someone who just owns property comes down to one thing: understanding the numbers. not gut feel. not what your mate reckons. numbers.

here are the five metrics that matter most — and how to calculate them yourself using real-world examples.

1. gross rental yield

this is your starting point — the simplest measure of whether a property's income stacks up against its price.

example: a house in kirwan, townsville. purchase price: $390,000. weekly rent: $430.

annual rent = $430 × 52 = $22,360. gross yield = ($22,360 ÷ $390,000) × 100 = 5.73%

as a rule of thumb, aim for 5% or above for gross yield. anything below 4% means you're relying heavily on capital growth to justify the investment. in townsville, yields of 5.5–6.5% are common across most suburbs — which is why the market attracts serious investors.

2. net rental yield

gross yield tells you the headline number. net yield tells you the truth. this accounts for all the costs of owning and managing the property.

typical annual expenses for a $390K townsville property:

• property management fees (8% of rent): $1,789
• council rates: $3,200
• insurance: $1,800
• maintenance allowance (1% of value): $3,900
• water rates: $1,100
• total: $11,789

net yield = (($22,360 − $11,789) ÷ $390,000) × 100 = 2.71%. that's the real return on your capital before mortgage payments and tax deductions. it's not as exciting as 5.73%, but it's honest — and in townsville, it's still considerably better than most capital city markets where net yields can be negative.

3. vacancy rate

vacancy rate measures the percentage of rental properties sitting empty at any given time. it's a supply-and-demand indicator that tells you how easy (or hard) it will be to find and keep tenants.

townsville's vacancy rate has been under 1% for most of the past three years. that means for every rental property listed, there are multiple applicants competing for it. as an investor, this translates to minimal vacancy periods, upward pressure on rents, and the ability to select quality tenants.

4. days on market

days on market (DOM) measures how quickly properties sell in a given area. it's a real-time demand indicator — when DOM drops, it means buyers are competing and properties are moving fast.

across townsville, well-priced properties in popular suburbs like burdell, kirwan, and north ward are selling in 20–35 days. that's a market where demand is real, not manufactured. when properties sell quickly, it signals underlying price pressure — meaning values are likely to continue climbing.

5. capital growth rate

while yield keeps the lights on, capital growth builds long-term wealth. this measures how much a property's value increases over time, typically expressed as an annual percentage.

example: you bought a property in townsville for $350,000 in 2022. it's now valued at $440,000 in 2026.

growth = (($440,000 − $350,000) ÷ $350,000) × 100 ÷ 4 = 6.43% per annum. that's strong by any measure. combined with a 5.5%+ gross yield, you're looking at a total return north of 12% annually — outperforming most share portfolios and every savings account in the country.

the australian long-term average for property capital growth is around 6–7% per annum. townsville is tracking at or above that, while offering yields double the national average. that's the sweet spot.

putting it all together

no single number tells the full story. a high yield in a suburb with rising vacancy is a warning sign, not an opportunity. strong capital growth with negative cash flow might work for high-income earners but will crush a first-time investor. the magic is in the combination — and right now, townsville's combination is hard to beat.

know these numbers before you buy. they'll tell you more than any sales pitch.