Friday form guide: Yields of up to 4.9% in Ashfield

10/4 Loftus Street, Ashfield, NSW 2131

The tenants of this two-bedroom unit are paying $405 per week and are on a lease until December this year. The property includes a lock-up garage and an internal laundry and is within walking distance of Ashfield shops, transport and parklands. 

LJ Hooker agent Michael Garcia is marketing the property with price hopes of $430,000 plus, and if it sells for that price that would secure an investor a gross rental yield of 4.9% at its current rent, just above the gross rental yield for Ashfield units of 4.5%, 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. Strata fees are about $661 per quarter, council rates about $227 per quarter and water is about $157 per quarter.

The median unit price in Ashfield rose 3.7% in the past year and 41.7% in the past five years, according to RP Data.

Washington Brown estimates the first-year tax depreciation deduction to be $3,000 and over five years to be $7,000.

The property will be open for inspection Saturday, July 21 at 11am and will go to auction Saturday, August 11 at 11.15am.

For more information about prices and yields in Ashfield, see the RP Data suburb page.

For another investment prospect open for inspection this weekend, see page 2.

27 Collett Street, Kensington, VIC, 3031

This two-bedroom Victorian cottage is currently tenanted at $400 per week until September, and Barry Plant listing agent Eugene Louey says comparable properties in the area rent for $450 per week. The property has high ceilings, open fireplaces and a rear courtyard or car park with right-of-way access. It is within walking distance of Racecourse Road, shops and cafes.

Louey is marketing the property with price hopes of $540,000 plus, and if it sells for $540,000 that would secure an investor a gross rental yield of 3.8% at its current rent. If it were rented for $450 a week, that would mean a yield of 4.3%, above the indicative gross rental yield of 3.62% for Kensington houses, 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 median house price in Kensington fell 2% in the past year but rose 49% in the past five years, according to RP Data.

Washington Brown estimates the first-year tax depreciation deduction to be $7,000 and over five years to be $25,000.

The property will go to auction Saturday, July 21 at 11.30am.

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