Friday Form Guide: Yields of up to 6.1% in Potts Point

56/12 Wylde Street, Potts Point, NSW, 2011

This one-bedroom apartment with harbour views has the potential to rent for $585 per week, according to Ray White Elizabeth Bay agents Nick Harrington and Mike Cotton-Stapleton, who are marketing the property. The 54-square-metre apartment on the fourth floor includes a balcony and an internal laundry.

Cotton-Stapleton and Harrington provide details of comparable sales, including the apartment at 16/4 Macleay Street, Potts Point, which sold for $500,000 in December 2011, and the apartment at 8/108 Victoria Street, Potts Point, which sold for $540,000 in September 2011. If the Wylde Street property sells for $500,000 and is rented out for $585 per week, that would secure an investor a gross rental yield of 6.1%, higher than the indicative gross rental yield for Potts Point units of 5.3%, 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. The strata levies for this property are $823 per quarter, the water levies are $144 per quarter and the coucnil rates are $188 per quarter.

The median price for Potts Point units went up 10.5% in the past year, according to RP Data. 

The property is open for inspection on Saturday, February 11 at 11am and will go to auction on Thursday, February 16 at 6.30pm. 

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

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