Investor form guide wrap: Yields of up to 5.7% in Dandenong

1/102 David Street, Dandenong, VIC, 3175

This two-bedroom unit is currently rented until November this year at $1,227 per month, meaning it could be a good prospect for investors. It has been recently renovated and has hardwood floors and a carport. 

It was passed in at its weekend auction on a vendor's bid of $240,000. There were three bidders at the auction.

McDonald Real Estate agent Trevor Mendis is markeing the property with price hopes of $260,000. Before auction Mendis provided a price guide of $240,000 plus. If it sells for $260,000, that would secure an investor a gross rental yield of 5.7%, far higher than the indicative gross rental yield of 4.8% for Dandenong 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 $4,000 and over five years to be $8,000.

The median unit price for Dandenong fell by 1.4% in the past year, according to RP Data.

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