Friday Form Guide: Yields of up to 7.5% if all goes well at The Block's blockbuster auction

Friday Form Guide: Yields of up to 7.5% if all goes well at The Block's blockbuster auction
Cassidy KnowltonDecember 8, 2020

This week's Friday Form Guide looks at the four Richmond cottages featured on Channel 9 hit The Block and what they might net for investors. 

37 Cameron Street, Richmond, VIC, 3121

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The only double-fronted cottage on The Block, the property at 37 Cameron Street has higher price hopes - and higher expected rents - than the other three. Like the other three properties, Josh and Jenna's offering has three bedrooms and two bathrooms, and listing agent Ruth Roberts of Woodards says the property could be expected to fetch between $1,200 and $1,300 per week in rent and has price hopes of $900,000 to $990,000. If the property sells at $900,000 and is rented at $1,300 per week, that would net an investor yiels of 7.5%, far higher than the indicative gross rental yield for Richmond of 3.5%, according to RP Data.  All four properties go to auction on Saturday, August 20 at Fitzroy Town Hall. For the depreciation of The Block cottages, click here.

 


39 Cameron Street, Richmond, VIC, 3121

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Listing agent Russell Cambridge of Biggin Scott says 39 Cameron Street has the lowest reserve price out of the four properties on The Block and thus will be the best bet for investors. He is quoting $800,000 to $880,000 (and says the reserve is within that range) for the property, renovated by Polly and Waz, which he expects to fetch rents of between $700 and $750 a week. If it sells for $800,000 and rents for $750 a week, that would net the landlord yields of 4.9%. Cambridge says he expects it to go for the lowest price, but it is comparable to the other three. Although some buyers have been put off by perceived interest in the reality show property, Cambridge says he has had serious interest from only two or three potential buyers.   

 


41 Cameron Street, Richmond, VIC, 3121

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Hocking Stuart listing agent Jodie McCarthy is the only one of the four agents Property Observer spoke with who quoted an estimated rent for an unfurnished property. McCarthy estimates that the property at 41 Cameron Street, renovated by Katrina and Amie, would garner between $660 and $700 a week in rent.McCarthy says she has price hopes of between $800,000 and $900,000. If it sells for $800,000 and is rented out at $700 per week that would net an investor a yield of 4.6%, far higher than the Richmond average rental yield for a house of 3.3%.

 


43 Cameron Street, Richmond, VIC, 3121

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Clayton Smith of Jellis Craig has the highest rental estimate of the single-fronted cottages, at $750 to $800 per week. His price hopes for the property are $800,000 to $900,000, but Smith says he is feeling that Rod and Tania's property will fetch a price "at the upper end of that range". If the property sells for $800,000 and rents at $800 per week, that would equate to a yield of 5.2%. If it sells at $900,000 and rents for $750, that would net an investor a yield of 4.23%, higher than the gross indicative yield for Richmond of 3.3%, according to RP Data. 

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