Investor Form Guide Wrap: Gross yield of 5.9% in East Geelong

Investor Form Guide Wrap: Gross yield of 5.9% in East Geelong
Cassidy KnowltonDecember 8, 2020

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 magazine picking the regional city as a fast-growing hotspot. Barry Plant Geelong agent Natalie Timonowicz sold this property under the hammer on Saturday, February 11 for $248,500. There was one bidder. Before auction Timonowicz gave price hopes of $250,000 plus. The sale price reflects a gross rental yield of 5.9%, 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. 

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

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