Friday form guide: Yields of up to 4.6% in Lennox Head

9 Cooloola Avenue, Lennox Head, NSW 2478

The tenants of this four-bedroom Lennox Head house are paying $490 per week and are on a month-to-month lease. Listing agent Lois Buckett of Lois Buckett Real Estate says they are keen to stay on, but that the property could possibly rent for as much as $510 per week. The property is 664 square metres and is close to schools, the town cente, the beach and a lake.

Buckett is marketing the property with price hopes in the mid-$500,000s, and if it sells for $550,000, that would secure an investor a gross rental yield of 4.6% at its current rent, just above the gross rental yield for Lennox Head houses of 4.2%, according to RP Data. If it were rented at $510, that would secure an investor a gross rental yield of 4.8%. 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.

The median house price in Lennox Head fell 10.3% in the past year but rose 13% in the past five years, according to RP Data.

Washington Brown estimates the first-year tax depreciation deduction to be $10,000 and over five years to be $31,000.

The property will be open for inspection Saturday, August 18 at 11am and will go to auction Wednesday, September 12 at 5pm.

For more information about prices and yields in Lennox Head, see the RP Data suburb page.

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

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677 Warrigal Road, Bentleigh East, Vic 3165

On a 600-square-metre block, this tenanted three-bedroom house has polished floorboards throughout, air-conditioning and a big backyard. The current tenants are paying $375 a week and are on a lease until January 2013. The Links Shopping Centre is across the road, and there are primary and secondary schools nearby. 

Century 21 listing agent Ben Quigley is marketing the property with price hopes of $460,000 plus, and if it sells for that price it would secure an investor a gross rental yield of 4.2%, well above the gross rental yield for Dandenong North houses of 3.3%, 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.

The median house price in Bentleigh East fell 7.4% in the past year but rose 52.6% in the past five years, according to RP Data.

Washington Brown estimates the first-year tax depreciation deduction to be $5,000 and over five years to be $8,000.

The property will go to auction Saturday, August 18 at 1pm.

For more information about prices and yields in Bentleigh East, see the RP Data suburb page.