Weekend Yield Watch: Gross yields of 4.8% in Belmont

Weekend Yield Watch: Gross yields of 4.8% in Belmont
Cassidy KnowltonDecember 8, 2020

3 Evans Street, Belmont, VIC, 3216


This three-bedroom property in the Geelong suburb of Belmont is tenanted at $18,200 per year until January 2012, and sold at auction on Saturday, November 5 for $379,000. There were three bidders. Listing agent Phillipa Gartland of Gartland Real Estate marketed the property with price hopes of about $370,000 plus (the vendor recently declined an offer of $350,000). That reflects a gross rental yield of 4.8%, which is at the indicative gross rental yield for Belmont houses, 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. The house is within walking distance of High Street shopping precinct and is a 15-minute drive to the coast. Washington Brown estimates the first-year tax depreciation deduction to be $6,000 and over five years to be $13,000. 

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

For more investment prospects going to auction this weekend, see pages 2 and 3.

 


 

14/14 Crimea Street, St Kilda, VIC, 3182

The tenant of this one-bedroom St Kilda apartment is paying $265 per week and is on a month-to-month lease but is keen to stay. It sold in post-auction negotiations for $301,000 after being passed in at $275,000. Listing agent Rohan White of Buxton Real Estate marketed the property with price hopes of $270,000 plus before auction and says it would be perfect for investors. The sale reflects a gross rental yield of 4.6%, higher than the indicative gross rental yield for St Kilda units of 4.1%, 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.  The unit is within walking distance of trams, Windsor train station and Albert Park. Washington Brown estimates the first-year tax depreciation deduction to be $5,000 and over five years to be $14,000. 

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


20 Betts Street, Parramatta, NSW, 2150

All five units in this block are tenanted, and their combined rent brings in $92,040 in total gross income per year. All five are two-bedroom units and include internal laundries. All but one are on month-to-month leases, according to Richardson & Wrench agent Abraham Gench. The property was passed in at auction on a bid of $1.81 million on Saturday, November 5, and has a reserve of $2.1 million. If it sells for $2.1 million that would secure an investor a gross rental yield of 4.4%, slightly less than the indicative gross rental yield for Parramatta units, 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. Council rates are $4,273 per year for the property, and water fees are $5,502 per year. The property is only a short walk to Parramatta city centre. Washington Brown estimates the first-year tax depreciation deduction to be $45,000 and over five years to be $145,000. 

For more about yields and prices in Parramatta, see the RP Data suburb page.

 


Editor's Picks