Weekend yield watch: Collingwood sale secures yield of 4.6%

12/30 Mater Street, Collingwood, VIC, 3066

This two-bedroom, two-bathroom apartment comes with a car space and storage cage and is tenanted until the end of March at $502 per week. Belinda Lindsay of Collins Simms sold it at auction on Saturday, October 8 for $570,000. It had pre-auction price hopes of $490,000 plus. Lindsay says bidding was intense, with five potential bidders and three active bidders on the day. The sale price reflects a gross rental yield of 4.6%, higher than the indicative gross rental yield of 4.3% for Collingwood units, 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. 

For more on gross rental yields and prices in Collingwood, see the RP Data suburb page.

For more investment prospects that went to auction this past weekend, see pages 2 and 3.

3/16 Morven Street, Yarraville, VIC, 3013

This three-bedroom townhouse opposite parklands is currently tenanted at $474 per week to tenants whose lease expires in February, though Sweeney Estate Agents' Dean Johnson says the tenants would be willing to leave earlier if needed. Johnson is marketing the property with price hopes of $549,000 plus. The property was passed in at auction on Saturday, October 8 on a single bid of $520,000. The property's reserve is $549,000. If it sells for $549,000 it would reflect a gross rental yield of 4.5%, far higher than the indicative gross rental yield for Yarraville of 3.3%, 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. 

For more infomation about yields and prices in Yarraville, see the RP Data suburb page.

4/ 30 Elm Street, Hawthorn, VIC, 3122

This two-bedroom Hawthorn unit has been leased to the same tenant for more than six years. The tenant is on a month-to month lease at $320 per week and is keen to stay in the property. Structured Property agent John Rombotis says that rent is under market value, and it could be rented for between $370 and $380 per week. Rombotis is marketing the property with price hopes of $420,000 plus. At its current rent, that would reflect a yield of 4%, about the same as the indicative gross rental yield for Hawthorn units of 4.1%, 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. The property went to auction on Saturday, October 8 at 11.30am. 

For more on yields and prices in Hawthorn, see the RP Data suburb page.