Investor form guide wrap: Yields of up to 4.3% in St Kilda

Investor form guide wrap: Yields of up to 4.3% in St Kilda
Cassidy KnowltonDecember 8, 2020

19/44 Fitzroy Street, St Kilda, VIC, 3182

On the second floor of a Fitzroy Street, St Kilda, block, this one-bedroom apartment is currently vacant but could be expected to secure a rental of $360 to $370 per week, according to listing agent Carl Hexter of Biggin Scott. It sold at its weekend auction to an investor for $445,000. There were three registered bidders. The apartment includes a separate study and an ornamental fireplace and is within metres of Fitzroy Street trams, cafes, restaurants and bars.

Hexter gave pre-auction price hopes of $380,000 plus and says the reserve was $410,000. If it is rented at $370, that would secure a gross rental yield at the median gross rental yield for St Kilda units of 4.3%, 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 property was last rented for about $320 per week, which would provide a gross rental yield of about 3.7%.

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 in St Kilda fell 0.6% in the past year but rose 37.9% in the past five years, according to RP Data.

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

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