Savvy investors target apartments with high rental yields

An investor snapped up an Adelaide apartment within days of it hitting the market simply because it offered such a great rental return. A country buyer looks set to outwit the federal government’s changes to investment properties, after swooping on a three-bedroom city apartment offering impressive rental returns. Within days of the apartment at 43/34 Austin St in Adelaide hitting the market, the investor-buyer had made an offer that was within the apartment’s $495,000-$515,000 asking price, said selling agent Felix Chu, of Sinova Property. While the offer was subject to an inspection of the apartment, which was expected to occur in coming days, Mr Chu said the apparent sale had occurred much quicker than he anticipated. Property records show a similar three-bedroom apartment in the same building, which was listed with another real estate agency, spent more than five months on the market before it finally sold for $420,000 in February. 43/34 Austin St, Adelaide. 43/34 Austin St, Adelaide. Mr Chu believed the apartment’s exceptional rental yields – which meant negative gearing would not apply – was a significant factor in the buyer’s decision to make an offer. The apartment is lease...