Friday form guide: Yields of up to 5.6% in Melbourne

Friday form guide: Yields of up to 5.6% in Melbourne
Cassidy KnowltonDecember 8, 2020

2111/250 Elizabeth Street, Melbourne, VIC, 3000


The tenant of this one-bedroom Melbourne CBD apartment is paying rent of $425 per week and is on a lease until January 2013, but agent Nathan Gibson of Harcourts says comparable apartments in the building are leased for $465 per week. 

Gibson is marketing the property with price hopes in the mid-$300,000 range, and if it sells for $370,000 that would secure an investor a gross rental yield of 5.6%, under the indicative gross rental yield for Melbourne units of 6.2%, according to RP Data. A rental of $465 per week would equate to a gross rental yield of 6.5%. 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 $10,000 and over five years to be $36,000.

The median unit price in Melbourne fell by 7.5% in the past year, according to RP Data.

The property will go to auction on Saturday, March 31 at 2pm.

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

For another investment prospect going to auction this weekend, see page 2.

 

 


1 Kennedy Drive, Tweed Heads, NSW, 2485


This three-bedroom Tweed Heads house has a development application in place for two duplexes, or an investor could retain the long-term tenant, who is paying $260 per week. Agent Jess Hutson says although the tenant is on an expired lease, that is market rent for the area.

Hutson is marketing the property with price hopes of $299,000 plus, and if it sells for that price it would secure an investor a gross rental yield of 4.5%, significantly above the indicative gross rental yield for Tweed Heads 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 $8,000.

The median house price in Tweed Heads had no change in the past year, according to RP Data.

The property will go to auction on Saturday, March 31 at 1pm.

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

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