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