How does PosiProp calculate gross rental yield?

Gross rental yield is calculated as (Annual Rental Income / Purchase Price) * 100. For suburbs, we aggregate 12-month rolling median rental rates against median sale prices across bedroom and dwelling types.

What holding cost assumptions are used in the PosiProp cash flow model?

PosiProp standard cash flow model estimates annual holding costs at 1.5% of the property purchase price, covering council rates, water utility charges, building and landlord insurance, body corporate, and property management fees.

How often is suburb and property data updated on PosiProp?

PosiProp indexes active listings and suburb performance metrics through daily automated batch pipelines, reconciling price changes, new listings, and sold statuses across 7,700+ Australian postcodes.

Transparent Analytics & Research

Data & Financial Methodology

How PosiProp aggregates Australian real estate metrics, computes gross rental yields, models positive cash flow, and identifies below-median investment opportunities.

1. Gross Rental Yield

Core screening metric for positive cash flow portfolios

Gross rental yield represents the percentage return generated by an asset before financing, statutory taxes, and operational expenses. It is the primary filter used by PosiProp to surface high-cash-flow markets.

Standard Formula

Gross Rental Yield (%) = (Annual Rental Income ÷ Purchase Price) × 100

Example: A property purchased for $450,000 renting for $550/week generates $28,600/yr = 6.35% Gross Yield.

High Yield (> 6.0%)Strong positive cash flow potential. Regional hubs & mining corridors.

Balanced (4.5% – 6.0%)Blend of steady cash flow and long-term capital growth prospects.

Low Yield (< 4.5%)Capital growth focused metropolitan cores; negative gearing typical.

2. Net Cash Flow & Financing Model

Simulating real-world holding and mortgage costs

Gross yield does not account for interest or property holding fees. PosiProp applies a baseline cash flow model to project after-expense pre-tax returns:

Cash Flow Formula

Net Annual Cash Flow = Annual Rent - Annual Interest - Annual Holding Costs

80% Loan-to-Value (LVR): Assumes a standard 20% cash deposit and 80% borrowed principal.

1.5% Estimated Annual Holding Costs: Standard provision covering council rates, water utility charges, landlord insurance, body corporate, and property management fees.

Interactive Adjustments: The Cash Flow Calculator allows users to stress-test interest rates (from 2.0% to 10.0%) and custom deposit percentages.

3. Valuation vs. Suburb Median

Finding undervalued opportunities relative to local benchmarks

To identify deals listed below fair market value, PosiProp cross-references every property's asking price against the 12-month rolling median for identical property types and bedroom categories in that suburb:

Valuation Formula

% vs Suburb Median = ((Listing Price - Suburb Median) ÷ Suburb Median) × 100

A listing displaying -15% is priced 15% below the prevailing suburb median for that property category, signaling potential equity capture or motivated vendor pricing.

4. Pipeline Integrity & Quality Standards

Continuous data reconciliation across 7,700+ postcodes

Daily Automated Batch Ingestion

Listings and suburb median updates run on automated concurrent batch daemons to ensure metrics reflect real-time market movements.

Sold Status Reconciliation

De-listed and sold properties are automatically updated to prevent stale listings from polluting cash flow searches.

Machine-Readable AI Specification

For LLMs, AI agents, and algorithmic researchers, PosiProp provides a structured specification.

View /llms.txt

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