Weekend Yield Watch: Yields of up to 4.3% in Dandenong North

2 Saintsbury Crescent, Dandenong North, VIC, 3175

The tenants of this three-bedroom house are paying $1,278 per month in rent. Although they intend to move out at the end of the month, McDonald Real Estate agent Brian Grace says it will be very easy to secure future tenants on a similar lease. Grace is marketing the property with price hopes of $360,000 plus. If it sells for that price it would secure an investor a gross rental yield of 4.3%, about the same as the indicative gross rental yield for Dandenong North 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. Washington Brown estimates the first-year tax depreciation deduction to be $4,000 and over five years to be $9,000. The house is on 560 square metres and has a large backyard and includes a garden shed. The property was passed in on a vendor bid of $360,000 at auction on Saturday, December 10.

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