Friday Form Guide: Yields of up to 5.8% in East Geelong

108 Ormond Road, East Geelong, VIC, 3219

This two-bedroom house in East Geelong is tenanted at $280 per week until November 2012, and its high rental yield could make it a good prospect for investors.  Geelong has become an investor magnet in recent times, with hotspotting.com.au director Terry Ryder and Your Investment Property magazien picking the regional city as a fast-growing hotspot. Barry Plant Geelong agent Natalie Timonowicz is marketing this property with price hopes of $250,000 plus. If it sells for $250,000 that would be a gross rental yield of 5.8%, much higher than the indicative gross rental yield for East Geelong houses of 3.9%, 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 $3,000 and over five years to be $5,000. The house, on a 651-square-metre block, is close to shops and public transport. It is open for inspection on Saturday, February 4 at 1.45pm and will go to auction on Saturday, February 11 at 11am.

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

For another investment prospect open for inspection this weekend, see page 2.

518 Smithfield Road, Prairiewood, NSW, 2176

The tenants of this three-bedroom Prairiewood house are paying $1,600 per month and are on an expired lease. Ray White agent Graham Ball is marketing the outer-Sydney property with price hopes of $450,000 plus, and if it sells for $450,000 that would secure an investor a gross rental yield of 4.3%. This is below the indicative gross rental yield for Prairiewood houses of 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 $3,000 and over five years to be $6,000. The property is on a large block of 1,248 square metres and is close to schools and transport. The property is open for inspection on Saturday, February 4 at noon and will go to auction on Thursday, February 16 at 6.30pm. 

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