A Burwood, Sydney guesthouse sells with a high rental yield of 13.9%

Nicola TrotmanDecember 7, 2020

A 45-room guesthouse recently sold in Sydney's Burwood for $3.74 million reflecting an approximate rental yield of 13.9%. 

Located at 33 Angelo Street, the two-storey Burwood Guest House has a gross annual revenue of $522,640.

Featuring 30 single rooms and 15 double rooms, the property also includes four commercial style stainless steel equipped kitchens.

The property has a total of nine bathrooms, with some located in communal areas.

Situated on an 834-square-metre lot, guests can also enjoy a north-facing courtyard.

The guesthouse is marketed as 'quality budget accommodation' with weekly rates starting from $230.

The property sold at auction through Joe Vigorito of Raine and Horne Burwood.

Vigorito says it's quite common for inner-west rental properties to have such a high rental yield.

"There's a shortage of rental properties and a lot of people looking for budget accommodation," says Vigorito.

Another budget accommodation property at 90 Shaftesbury Road Burwood sold in 2010 for $2.75 million.

It was advertised with a 10% yield, reflecting an approximate gross annual intake of $275,000.

The property featured 22 lettings, including two self-contained units.

It was also sold through Joe Vigorito of Raine and Horne.

The median house price in Burwood is $1,177,500, a price growth of 47.2% in five years, according to RP Data.

Nicola Trotman

With a penchant for the written word, Nicola has built a career doing just this – now Creative Director at thriving Melbourne-based PR agency, Greenpoint Media.

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