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.