Mark – the % return is simply calculated by the weekly rent ($300) multiplied by 52 (weeks in year) divided by the purchase price of property ($300k) – therefore the return is a gross calculation before any tax breaks etc (or other expenses). For higher returns, from other potential properties do some internet searching (eg http://www. realestate.com.au). You may also consider commercial property that should provide a higher return (but maybe not the capital growth). David.
