An investor compares a property’s net return with what the same money earns safely elsewhere. Right now that comparison is hard for established property to win.
What cash earns
As at 3 November 2026, three of the big four banks were paying 5.30% a year on a 12-month term deposit for new customers, and the fourth 4.75%. The 10-year Australian Government bond was yielding around 5.1%.
What property earns
A rental property’s gross yield is its yearly rent divided by its price. Its net yield is what is left after strata levies, council and water rates, insurance, maintenance and management fees. For many established Perth units, the net yield sits well below a term deposit rate. On top of that, the cash rate rose again in November.
What we are seeing
Many investors are selling. Those still buying are mostly buying for a reason other than return: a home for a child at university, a place for a family member, or a property in a particular school catchment.
Why rents may still rise
Perth’s rental vacancy rate was 1.7% at the end of September 2026, according to REIWA, and rental listings are falling as investors sell. Even so, a higher rent rarely closes the gap between net yield and a term deposit.
General information only, not financial advice. Speak with a licensed financial adviser about your situation.
Sources
- Canstar, big four term deposit rates, 3 November 2026.
- Reserve Bank of Australia, table F2, 10-year government bond yield, 3 November 2026.
- Reserve Bank of Australia, cash rate target.
- REIWA, vacancy rate release, 13 October 2026.
