Friday form guide: Yields of up to 7.8% in Young

This two-bedroom cottage in the NSW town of Young was recently rented for $150 per week and is currently vacant. LJ Hooker agent Christian Rowan says it would be a great investment opportunity. It is on a 758-square-metre block with a garage and is within walking distance of schools.

Rowan is marketing the property with price hopes of $100,000 plus, and if it sells for that price, that would secure an investor a gross rental yield of 7.8% at a rent of $150 per week,  well above the gross rental yield for Young houses of 5.6%, 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 $2,000 and over five years to be $4,000.

The median house price in Young rose 6.5% in the past year and 13.6% in the past five years, according to RP Data.

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

The property will go to auction Saturday, November 10 at 10am.