Property ROI Calculator Australia

How to Use This Property Investment Calculator

Enter your property purchase details including price, deposit, and expected rental income. Select your state to calculate stamp duty automatically. Set your assumptions for capital growth and rental increases to see projected returns over your investment timeframe. The calculator shows your total ROI, annual cash flow, and year-by-year breakdown.

Australian Stamp Duty by State 2025

Stamp duty (or transfer duty) is a state tax paid when you purchase property. It's one of the largest upfront costs for property investors. Rates vary significantly between states:

Stamp Duty Examples ($600,000 Property)

Note: These are approximate figures for standard residential investment properties. First home buyer concessions and other exemptions may apply.

Understanding Property Investment Returns

Rental Yield Explained

Rental yield measures the income return on your property investment. Gross yield is simply annual rent divided by purchase price. For a $600,000 property renting at $500/week ($26,000/year), gross yield is 4.3%. Net yield subtracts expenses like rates, insurance, and management fees, giving a more realistic picture of your cash return.

Capital Growth vs Rental Yield

There's often a trade-off between rental yield and capital growth. Inner-city apartments in Melbourne or Sydney might yield 3-4% but benefit from strong capital growth. Regional properties might yield 6-7% but with slower value appreciation. Your investment strategy should align with your goals—income vs wealth building.

What's Included in Your Investment Costs

• Deposit: Typically 10-20% of purchase price (20% avoids LMI)
• Stamp duty: Varies by state, usually 3-5% of purchase price
• Legal fees: Conveyancing typically $1,500-$2,500
• Building/pest inspection: $400-$800
• Loan establishment fees: $0-$600 depending on lender

Frequently Asked Questions

How long should I hold an investment property?

Property investment is typically a long-term strategy. Most advisers suggest a minimum of 7-10 years to ride out market cycles and offset the significant buying and selling costs (stamp duty, agent fees, legal costs). Short-term holding rarely makes financial sense due to these transaction costs.

What costs should I budget for ongoing?

Annual holding costs typically include council rates ($1,500-$3,000), water rates ($600-$1,200), landlord insurance ($1,000-$2,000), property management (5-8% of rent), and maintenance (budget 1-2% of property value per year). For apartments, add strata fees ($2,000-$10,000+).

How does capital gains tax affect my returns?

When you sell an investment property at a profit, you pay capital gains tax (CGT) at your marginal tax rate. If you've held the property for more than 12 months, you receive a 50% CGT discount—you only pay tax on half the gain. This is a significant benefit for long-term investors.