Weekend yield watch: Brunswick sale secures yield of 3.8%

33 Charles Street, Brunswick, VIC, 3056

This two-bedroom house in the inner-Melbourne suburb of Brunswick is close to Sydney Road shops, Princes Park and transport links. GA Thomson agent Jason Sharpe  has done a rental assessment on the property and estimates that it would rent for the "mid $400s". The property sold under the hammer for $623,000 in an auction with five bidders on Saturday, October 22. Its reserve was $570. If the new owner rents it out at $450 per week this would be gross rental yield of 3.8%, higher than the indicative gross rental yield for Brunswick of 3.5%, according to RP Data. The gross rental yield does not consider the costs of maintaining the property, including council rates and other fees such as water bills and managing agent fees. Washington Brown estimates the first-year tax depreciation deduction to be $5,000 and over five years to be $13,000.

For more information about gross rental yields and prices in Brunswick, see the RP Data suburb page.

For more investment prospects that went auction this past weekend, see pages 2 and 3.

137 Meadows Road, Mount Pritchard, NSW, 2170

This two-bedroom property has had a long-term tenant in place for many years, paying below market rent of $220 per week. Century 21 agent Ray Zeait is marketing the property with price hopes of $330,000 plus. If it sells for $330,000 and the current tenants are retained on the current rent an investor would secure a gross rental yield of 3.5%, below the indicative gross rental yield for Mount Pritchard houses of 5.3%, according to RP Data. The median asking rent for the suburb is $390 per week, and that would equate to a gross rental yield of 6.2%. The gross rental yield does not consider the costs of maintaining the property, including council rates and other fees such as water bills and managing agent fees. Washington Brown estimates the first-year tax depreciation deduction to be $5,000 and over five years to be $10,000. The property was passed in at $320,000 at auction on Saturday, October 22. There were two bidders.

For more information about yields and prices in Mount Pritchard, see the RP Data suburb page.

4/89 Crown Street, Tamworth, NSW, 2340

This tenanted two-bedroom unit in central western NSW could appeal to investors, as it has a high gross rental yield of 5%. Davidson Cameron & Co agent Kylie Walsh is marketing the property with price hopes of $255,000 plus and says the current tenants pay $250 per week. Walsh says the tenants' lease is up but they would like to stay on. The gross rental yield does not consider the costs of maintaining the property, including council rates and other fees such as water bills and managing agent fees. strata levies are $1,775 per annum, and council rates are $1,526 per annum for the property. Washington Brown estimates the first-year tax depreciation deduction to be $6,000 and over five years to be $18,000. The property was passed in at auction on Saturday, October 22 on a vendor's bid of $225,000. There were no other bids.