Friday form guide: Yields of up to 7% in Balgowlah

With tenants paying the "fantastic rent" of $550 per week, this two-bedroom apartment in the Sydney northern beaches suburb of Balgowlah could be a good prospect for investors. Ray White agent Mark Griffiths says although the tenants of two years are on an expired lease, their rent was reviewed recently and ithe tenants are paying considerably above average rent for the block. The median asking rent for Balgowlah units is $500 per week, according RP Data.

Griffiths is marketing the property with price hopes of $410,000. If it sells for $410,000, that would secure an investor a gross rental yield of 7%, far higher than the indicative gross rental yield of 4.2% for Balgowlah 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.

Washington Brown estimates the first-year tax depreciation deduction to be $8,000 and over five years to be $28,000.

The median unit price for Balgowlah fell by 12.5% in the past year, according to RP Data.

The property will be open for inspection on Saturday, March 10 at 2pm and will go to auction on Saturday, March 24 at 2.30pm.

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

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

10/16 Pascoe Street, Pascoe Vale, VIC, 3044

This two-bedroom Pascoe Vale townhouse is tenanted until January 2013 at $18,720 per year, so it might be a good prospect for investors. Raine & Horne agent Sebastian Rello is marketing the property with price hopes of $380,000 plus, and if it sells at $380,000 that would secure an investor a gross rental yield of 4.9%, far higher than the indicative gross rental yield for Pascoe Vale houses of 3.3%, according 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 $9,000 and over five years to be $32,000.

The median unit price for Pascoe Vale houses fell by 5.1% in the past year, according to RP Data.

The property will be open for inspection on Saturday, March 10 at 11am and will go to auction on Wednesday, March 31 at 2.30pm.

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