Cassidy Knowlton | 20 December 2012

Friday form guide: Yields of up to 6.8% in the last pre-Christmas auction weekend

Friday form guide: Yields of up to 6.8% in the last pre-Christmas auction weekend
8/127-129 Polding Street, Fairfield Heights, NSW, 2165

polding

There is no pre-Christmas slowdown in the market in Fairfield Heights, according to Ray White agent Graham Ball, who is marketing this three-bedroom house. 

"We're going to be busy right up until Christmas Eve," says Ball.

"The market is buzzing along in our area."

The townhouse is within easy walking distance of Fairfield Heights Shopping Centre and has a bus stop out the front. It is currently leased until April for $460 per week, which Ball says is a great return for the property. He says the tenants are keen to stay on longer if possible. 

Ball is marketing the property with price hopes of around $350,000, and if it sells for that price, that would secure an investor a gross rental yield of 6.8% at its current rent, well above the gross rental yield for Fairfield Heights houses of 5.1%, 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 $28,000.

The median house price in Fairfield Heights rose 0.6% in the past year and rose 30.3% in the past five years, according to RP Data.

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

The property will go to auction on December 22 at noon.

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