Brisbane 4-bed apartment at A$1.292m: does the rental return stack up?

[kit_stone]

The latest rent estimate is A$5,170 a month, which raises a new question about whether this 4-bed Brisbane apartment works once ownership costs are included. At the A$1,292,000 purchase price, the gross yield is about 4.8%.

I have budgeted for ordinary vacancies and repairs, plus management and a reserve for a larger job, but this would be our first rental apartment. The building looks sound, although lease duration could mean more frequent tenant changes. Which apartment-specific costs deserve the closest check, and would you judge the deal mainly on net cash flow under higher financing costs rather than on the headline yield?

 

[tradeTheChart]

For an apartment, I’d scrutinise body corporate levies and the possibility of special levies before anything else. Also separate council rates, water charges, landlord insurance and any ownership-dependent property tax from ordinary maintenance. Ask for the building’s levy history and planned major works, not just the current annual figure.

Is A$5,170 the rent supported by an existing lease or an agent’s estimate? I’d stress-test lower rent, extra vacancy and higher financing costs, then compare the resulting cash flow rather than choosing a target net yield in isolation.