Friday form guide: Yields of up to 5.9% in Redfern

16/187 Cleveland Street, Redfern, NSW, 2016

Within walking distance of Central Station and Sydney CBD, this recently renovated two-bedroom apartment is currently tenanted at $550 per week, and the tenant is on an expired lease. Listing agent Braden Walters from True Property says the unit could reasonably be expected to fetch $570 a week in rent. The property is also within walking distance of Surry Hills, UTS and the University of Sydney. 

Walters is marketing the property with price hopes of $500,000 plus, and if it sells for that price that would secure an investor a gross rental yield of 5.7% at its current rent, above the indicative gross rental yield for Redfern units of 4.8%, according to RP Data. At $570 per week it would secure an investor a gross rental yield of $5.9%. 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.

Washington Brown estimates the first-year tax depreciation deduction to be $13,000 and over five years to be $43,000.

The median unit price in Redfern rose 1.1% in the past year and 31.9% in the past five years, according to RP Data.

The property will go to auction on Saturday, June 30 at 1pm.

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

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