What mix of rent rises and price falls gets investor yields back to breakeven?

Required fall in property prices needed to lift gross yields from 3.95% to two hurdle rates, for a range of rent increases

Current gross rental yield of 3.95%. 5.15% hurdle reflects the minimum yield needed to replace the lost negative-gearing tax benefit; 6.50% hurdle reflects a self-funding/cash-flow breakeven yield. Price-fall values are floored at 0% once rent growth alone is sufficient to reach the target yield.
Source: Cotality (gross rental yield data). Calculations: Ray White Economics.Download image