Friday form guide: Yields of up to 8.7% in Coffs Harbour
A remarkable 8.7% gross rental yield is possible for this Coffs Harbour property, which consists of a main three-bedroom residence and a separate self-contained two-bedroom flat with its own entrance. The residence has recently been rented out at $250 per week and the flat has been recently tenanted at $150 per week, though both are vacant now. The property is on the edge of Coffs Harbour CBD.
Nolan partners agent Scott Nolan is marketing the property with price hopes in the "mid-$200,000s", and if it sells for $240,000, that would secure an investor a gross rental yield of 8.7%, well above the gross indicative yield of 5.3% for Coffs Harbour houses and 5.6% for Coffs Harbour 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 $3,000 and over five years to be $7,000.
The median house price in Coffs Harbour fell 6.9% in the past year, according to RP Data.
The property will be open for inspection Saturday, June 2 at 10.45am and will go to auction Thursday, June 14 at 6pm.
For more about prices and yields in Coffs Harbour, see the RP Data suburb page.
For another investment prospect open for inspection this weekend, see page 2.
49 Dundas Street, Rye, VIC, 3941
This three-bedroom house on 892 square metres is leased at $330 per week until September this year, and listing agent Glenn Key of Stockdale & Leggo says it would be suitable to be let out as holiday rental property or on a long-term rental. It includes a large, high-roofed garage or workshop with lighting and power, which Key says would be perfect for a car enthusiast. It includes a full-width rear covered deck, and the three double bedrooms include built-in wardrobes.
Key says there has been interest "in the early to mid $400s", but he hopes to secure a bit more for the property. If it sells for $450,000 that would secure an investor a gross rental yield of 3.8% at its current rent. 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 $5,000 and over five years to be $11,000.
The property will be open for inspection Saturday, June 2 at 1pm and will go to auction Saturday, June 23 at 2pm.