Friday Form Guide: Yields of up to 9% in North Ryde

These serviced apartments are leased to the Quest hotel group until 2013, with three further five-year renewal options. The properties are now returning gross rent of $36,000 per year, with a guaranteed 3.25% rental increase every year. The guaranteed rental income and extremely high rental yield could make them a good prospect for investors.

City Partners Realty agent Alex Ye is marketing the properties with price hopes of $400,000 plus. It is a mortgagee sale. If they sell for $400,000, that would secure an investor a gross rental yield of 9%, almost three times as high as the indicative gross rental yield for North Ryde units of 3.6%, 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. For this property Quest pays strata, water and council rates, the investor is only liable for a sinking fund.

Washington Brown estimates the first-year tax depreciation deduction to be $9,000 and over five years to be $32,000.

The median unit price for North Ryde rose by 13.4% in the past year, according to RP Data.

The property will be open for inspection on Saturday, March 3 at 3.30pm and will go to auction on Wednesday, March 14 at 6pm.

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

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

This two-bedroom, ground-floor apartment is currently rented at $310 per week. Its tenants are on a month-to-month lease, and their rent was raised from $300 to $310 in January. It includes a full laundry, private garden and balcony, and it is within walking distance of Footscray Gardens, Victoria University and the train station. 

Hocking Stuart agent Adam Welling is marketing the property with price hopes of $250,000 plus. If it sells for $250,000, that would secure an investor a gross rental yield of 6.5%, higher than the indicative gross rental yield for Footscray units of 4.8%, 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 $7,000.

The median unit price for Footscray fell by 10.1% in the past year, according to RP Data.

The property will be open for inspection on Saturday, March 3 at 10.15am and will go to auction on Wednesday, March 24 at 11.30am.

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