A Strong 3.4% Net Yield For An Industrial Property In Underwood

Who says the market is slow?

After the record price of $10 million + GST achieved for a development site in Eight Mile Plains, Peter Huang, the founder of Yong Real Estate, together with his colleague Peter Wan, has just sold and settled another property at 18 Darnick Street, Underwood, a 16 unit mini warehouse for a strong yield of around 3.4% net return based on its passing net income of $19,612. If based on its current fully leased rental of $30,412, the net return is still only 5.2% which is a very strong sale in today's environment. The previous Asian vendor is selling this property to focus on their other investments because of their commitments overseas and the new buyer is planning to build a portfolio of these mini-warehouses. The buyer is Bayside based and working between Brisbane and Sydney. He is confident he can further improve the property and thus increase the yield and reap the capital gain potential in the future.