Investor form guide wrap: No takers yet for 5.5% yields in Coffs Harbour, but investor snaps up Fairfield Heights

Investor form guide wrap: No takers yet for 5.5% yields in Coffs Harbour, but investor snaps up Fairfield Heights
Cassidy KnowltonDecember 8, 2020

104 Stella Street, Fairfield Heights, NSW, 2165


An investor has bought this three-bedroom house in Fairfield Heights at its weekend auction for $570,000. There were 10 registered bidders. The tenant is paying $380 per week and is on an expired lease. Pretti Real Estate agent Stephen Jurinic says this is below market rent, and the property could be leased for between $400 and $420 per week. The house has timber floors, a timber kitchen and a detatched room that could make a good home office.

At its current rent it will secure its new owner an indicative gross rental yield of 3.5%, below the indicative gross rental yield for Fairfield houses of 5.1%, 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. If it were rented for $420 per week that would equate to an indicative gross rental yield of 3.8%.

Washington Brown estimates the first-year tax depreciation deduction to be $10,000 and over five years to be $28,000.

The median house price in Fairfield Heights rose by 7.2% in the past year, according to RP Data.

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

 


 

9/20 Joyce Street, Coffs Harbour, NSW, 2450


There was no interest from potential bidders in this two-bedroom Coffs Harbour townhouse, and First National Coffs Harbour agent Caroline Campbell cancelled its scheduled weekend auction. The tenants are paying $190 per week and are on an expired lease. First National Coffs Harbour agent Caroline Campbell says market rent for the property would be about $240 or $250 per week. It is within easy walking distance of the village shopping strip, schools and sports fields.

Campbell is now marketing the property with price hopes of $179,000. Before the scheduled auction she provided price hopes of $150,000 plus. If it sells for $179,000 that would secure an investor a gross rental yield of 5.5% at its current rent, higher than the indicative gross rental yield for Coffs Harbour houses of 5.2%, according RP Data. If it were rented at $250 per week, that would be a remarkable gross rental yield of 7.3%. 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. Council rates are $1,669 per year, and strata fees are $1,520 per year.

Washington Brown estimates the first-year tax depreciation deduction to be $6,000 and over five years to be $18,000.

The median house price fell in Coffs Harbour fell by 4.9% in the past year, according to RP Data.

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

 

 

 

 

Editor's Picks