$410 a night short term holiday rental income lure for the Block Sky High investors
Potential buyers of the lower level apartments in the Block Sky High complex have been advised that $410 a night rental income was possible for the recently completed South Melbourne apartments.
Jane Mlikota of Parkinson Real Estate at Albert Park has told buyers the apartments "would be ideally suited to the short term holiday rental market given its television exposure."
Based on our currently listed holiday lets we believe we could achieve a nightly rental of $410 per night based on an average of 240 to 270 nights per year. It suggests a potential $98,400 revenue.
They have also been told gross yields for any investment could be in the range of 9% to 10% based on a $1.3 million purchase price based on 12 month rental agreements with tenants.
The yield arises from $1,600 unfurnished to $1,800 fully furnished weekly rentals at the 142 Park Street address. Landlords would gross $83,200 plus.
The return, after including tax depreciation benefits, is estimated at between $121,000 to $137,000.
The rental yield appraisals for the South Melbourne apartments are based on the tax benefits possible for a taxpayer on the highest taxation bracket.
It was only a guide. There have been investors also attracted by the depreciation tax windfall.
