Cassidy Knowlton | 6 December 2012

Friday form guide: Yields of up to 6% in Byron Bay

Friday form guide: Yields of up to 6% in Byron Bay
13/26 Bayshore Drive Byron Bay, NSW, 2481

Just one kilometre from the beach, this single-level, two-bedroom villa is currently tenanted at $380 per week. It includes a single lock-up garage, and listing agent Brett Connable of Ray White says it presents a "great investment opportunity".

Connable is marketing the property with price hopes of $329,000 plus, and if it sells for that price, that would secure an investor a gross rental yield of 6% at its current rent, above the gross rental yield for Byron Bay 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.

Washington Brown estimates the first-year tax depreciation deduction to be $8,000 and over five years to be $29,000.

The median unit price in Byron Bay fell 20.7% in the past year but rose 11.4% in the past five years, according to RP Data.

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

The property will go to auction Saturday, December 8 at 10am.

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