Weekend Yield Watch: Yields of up to 4% in Murrumbeena

7/163 Murrumbeena Road, Murrumbeena, VIC, 3163

The tenant of this one-bedroom, one-bathroom apartment is on a month-t0-month lease but would be happy to sign a new contract. The tenant is currently paying $826 per month, and Century 21 agent Jeffrey Anderson was marketing it before the auction with price hopes of $240,000 plus. It was passed in at its Saturday auction on a vendor bid of $250,000. Had it sold for $250,000, that would equate to a gross rental yield of 4%, much higher than the indicative gross rental yield of 2.9% for Murrumbeena 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. The property is within easy walking distance of Murrumbeena Station and Neerim Road shopping centre.  Washington Brown estimates the first-year tax depreciation deduction to be $3,000 and over five years to be $6,000.

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