Yarraville: Why Location Means Everything – Choosing the Right Property for SMSF Investors

Photo: The Home Page

I recently had the pleasure of assisting a fantastic client with a self-managed super purchase. 

Knowing that SMSF purchases require a high degree of scrutiny, and also appreciating the restrictions in place for SMSF investors, I had to carefully craft a strategy that would deliver the rental yield nominated by their financial planner. 

I also had to select an asset with the growth potential to outperform metro Melbourne unit growth. 

Why Location Means Everything

Location became the important element. I knew that I had to find a well-appointed, quality boutique unit within an easy walk to trains, shops and cafes, in a village atmosphere where high income professionals would love to rent. 

“It’s fair to say that there aren’t many 2 bedroom apartments within 6km of the city that offer returns like this.”

More importantly, the magnitude of the rental returns required suggested that a stronger-than-normal rent would be necessary for the metrics to work for my client. As a result, I chose localities within the inner north-west and inner-west for optimum rental yield.

Yarraville Village
Photo: Kliger Wood

The Perfect Opportunity in Yarraville 

This off-market property in the heart of the Yarraville village came up for sale and as soon as the agent had alerted me to the opportunity, I wasted no time with my inspection. 

It was everything that I was looking for; a nicely presented home with city views off its balcony on a boutique block with security access. The current tenants kept the property in great condition. 

On $400 per week, this property will return a 4.78 per cent gross rental yield at the purchase price, which is $435,000. It’s fair to say that there aren’t many 2 bedroom apartments within 6km of the city that offer returns like this.

“I knew that I had to find a well-appointed quality boutique unit within an easy walk to trains, shops and cafes.”

Being able to stroll into the cafes on Anderson Street within 2 minutes would put a spring in any tenant’s step, and better still, never having to battle to find a car park when going to a movie at the Sun Theatre would be welcomed by any Yarraville resident. 

Walking from the front door to the station, catching a morning train to the city and arriving at work in twenty minutes certainly holds appeal. 

Best of all though, the city views from the balcony, combined with a gorgeous streetscape of cute Victorians, creates a wonderful scene for the inhabitants of this lovely apartment.

Source: Pricefinder

Points of Interest in Yarraville, Postcode 3013

The Sun Theatre
St Augustine’s Primary School
Cafe Terroni
City of Maribyrnong