Weekend Yield Watch: Yields of up to 4.2% in Mornington

4/5 Tanti Avenue, Mornington, VIC, 3931

In the former Sisters of Mercy Convent, this one-bedroom apartment in the beachside suburb of Mornington is tenanted until August next year at $360 per week. Harcourts Mornington agent Terry Young is marketing the property with price hopes of between the "mid-$400,000s and early $500,000s". If it sells for $450,000 that would secure an investor a gross rental yield of 4.2%, the same as the indicative gross rental yield for Mornington 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. The apartment has three-metre ceilings and period features such as cornices, and is has direct access to the beach. Washington Brown estimates the first-year tax depreciation deduction to be $10,000 and over five years to be $34,000. The propertywas withdrawn from its planned auction on Saturday, December 3 and remains for sale. 

For more on prices and yields in Mornington, see the RP Data suburb page.