Investor form guide wrap: No takers for 4.3% yields in Thomastown

4 Howe Court, Thomastown, VIC, 3074

This property is currently vacant but has been recently tentanted at $300 per week, which Ray White agent Joe Torzillo says is at the market rent for the property. It has three bedrooms and is close to shops, schools, transport and the Western Ring Road. The 26-year-old house is on 602 square metres. It was passed in at its weekend auction for $300,000.

Torzillo is marketing the property with price hopes of $360,000, and if it sells for $360,000 and if rented at $300 per week, that would secure an investor a gross rental yield of 4.3%. This is about at the indicative gross rental yield for Thomastown 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. Council fees are about $1,000 per annum.

Washington Brown estimates the first-year tax depreciation deduction to be $6,000 and over five years to be $13,000.

The median house price in Thomastown fell by 4.2% in the past year, according to RP Data.

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