Friday form guide: Yields of up to 5.5% in Cabramatta

27 Grace Street, Cabramatta, NSW, 2166

In the popular Sydney suburb of Cabramatta, this three-bedroom house is on 658 square metres and is close to Cabramatta high school. The $400 a week lease will have expired by the time the property goes to auction, but LJ Hooker agent Patrick Yeung says the tenant is keen to stay on and that $400 per week is market rent for the area. 

Yeung is marketing the property with price hopes of $380,000 plus, and if it sells for that price that would secure an investor a gross rental yield of 5.5%, well above the indicative gross rental yield of 4.1% for Cabramatta 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.

Yeung recently sold a nearby property for $435,000 that was in much worse condition but in a better location than the Grace Street property. The tenants in that house paid $330 per week. The median asking rent for Cabramatta houses is $380 per week. 

Washington Brown estimates the first-year tax depreciation deduction to be $4,000 and over five years to be $10,000.

The property will be open for inspection Saturday, May 12 at 11.15am and will go to auction Saturday, June 2 at noon.

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

 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.

Torzillo is marketing the property with price hopes of $360,000 plus, and if it sells for $360,000 and is 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.

The property will be open for inspection Saturday, May 12 at 10am and will go to auction Saturday, May 19 at 3pm.

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