Recent purchase · settled July 2026Purchased with Rethink
Two-bed apartment, inner bayside Melbourne
City of Port Phillip, VIC · 15-apartment block · tenant in place
Purchase price
$585,000
$25,000 under the CMA floor
Gross yield
5.69%
$640/wk in place at purchase
At $680/wk re-let
6.04%
arithmetic, not a forecast
Area reports
The property
| Configuration | 2 bed, 1 bath, 1 car |
| Size | 68 sqm internal |
| Built | 1970 |
| CMA range at purchase | $610,000 to $630,000 |
| Against comparable sales | About $39,000 under the median of same-size (68 sqm) sales |
| Owners corporation levies | About $2,219 a year |
| Depreciation | Minimal, 1970 build (no Div 43 capital works claim) |
The client brief
A couple looking for an income-led first investment under $600k. The brief: a two-bed apartment, low density, inner bayside, with yield above 5%. This one met the price and the property type, and the yield cleared their 5% floor.
Flagged before offer
- Two earlier sale campaigns (2023 and 2024) that did not transact. The reason was to be checked before committing.
- Strata minutes and sinking fund balance, to rule out a building issue or a levy overhang.
- Lease expiry and rent review terms, so the re-let is planned rather than assumed.
James's noteThis is the shape of apartment I am buying now: a small block, an inner suburb with deep tenant demand, a tenant already in place, and a price below the CMA floor so the deal does not lean on growth. It settled in July, so there is no review result yet.
Recent purchase · settled July 2026Purchased with Rethink
Two-bed ground-floor apartment with a courtyard, inner bayside Melbourne
City of Port Phillip, VIC · off-market purchase · vacant at purchase
Purchase price
$520,000
$5,000 under the asking price
Gross yield
5.00%
at the $500/wk rental appraisal
After a refresh
6.0% to 6.5%
scenario at $600 to $650/wk, not a result
Area reports
The property
| Configuration | 2 bed, 1 bath, 1 car |
| Position | Ground floor, large courtyard, Carlisle Street precinct |
| Condition | Original kitchen and bathroom, new air conditioning and blinds |
| Rent | Vacant at purchase. $500/wk is an appraisal, not rent in place |
| Strata | About $4,500 a year, about 17% of gross rent at $500/wk |
| Refresh scenario | $40,000 to $50,000 on the kitchen, bathroom, flooring and courtyard (my estimate of the spend) |
Flagged before offer
- Strata is the heaviest holding-cost line. The sinking fund balance and minutes were to be checked before the contract went unconditional.
- Build year was not confirmed, so the depreciation position was unknown at offer.
- The 5.00% depends on a rental appraisal. The refresh figures are a scenario that the owner chooses to run or not.
Recent purchase · off-marketPurchased with Rethink
One-bed apartment at $410k, inner south-east Melbourne
City of Glen Eira, VIC · about 10km from the CBD · vacant possession at settlement
Purchase price
$410,000
off-market, entry price under $500k
Gross yield
5.90%
at $465/wk, midpoint of the first appraisal
At the updated appraisal
6.34%
at $500/wk, midpoint of $480 to $520/wk
The property
| Configuration | 1 bed, 1 bath, 1 car |
| Size | 54 sqm internal |
| Built | 1970 |
| Occupancy | Owner-occupied, vacant possession at settlement |
| Rent | An appraisal, not rent in place: $450 to $480/wk first, then $480 to $520/wk |
| Owners corporation levies | About $4,444 a year, about 1.1% of the purchase price |
Flagged before offer
- No tenancy history, because the owner lived there. The yield rests on appraisals, so the first lease sets the real number.
- Owners corporation minutes, sinking fund and the insurance certificate were to be reviewed within the building and pest period.
- A 1970 build means no capital works depreciation claim.
Recent purchase · settled June 2026Purchased with Rethink
Three-bed house on 535 sqm, Geelong
City of Greater Geelong, VIC · off-market · 12-month leaseback
Purchase price
$640,000
$10,000 to $20,000 under four nearby sales
Gross yield
~4.1%
$500 to $510/wk estimated
Land rate
$1,196/sqm
comparable median ~$1,215
Area reports
The property
| Configuration | 3 bed, 1 bath, 2 car |
| Land and floor | 535 sqm land, about 115 sqm internal |
| Built | 1975 |
| Tenancy | Vendor leaseback for 12 months at market rent, so rent starts at settlement |
| Contract protections | 5% deposit refundable, 14-day building and pest, 14-day finance, 35-day settlement |
The evidence
| Comparable sales | Four nearby houses sold $650,000 to $660,000 between January and April 2026, on 521 to 578 sqm |
| Land signal | $1,196 per sqm of land, below the time-adjusted comparable median of about $1,215 |
| Internal signal | $5,565 per sqm internal, below the comparable lower quartile of about $6,282 (typical of a less renovated house) |
The client brief
A couple buying their first investment property. Growth-led, inside a $650k cap, with the plan built around building equity first and keeping the second purchase open. A land-heavy house in a large regional city fit that, and the leaseback meant no vacancy gap at settlement.
Flagged before offer
- A 1975 build, so the building and pest report carries the weight: roof, plumbing, electrical, moisture and subfloor.
- Supply in the greenfield estates nearby, which makes comparable evidence and street-level location matter more than the suburb average.
- Leaseback terms in writing: rent, bond, inspections and the vacate plan.
James's noteA land-led house bought under the sales around it. The yield is lower than the apartment above, and the plan here was growth first. Settled in June, so no review result yet.
Six-month result · settled January 2026Purchased with Rethink
Three-bed renovated house on a 667 sqm corner block, Ballarat
City of Ballarat, VIC · tenanted · reviewed July 2026
Purchase price
$540,000
January 2026
Estimate at six months
$600,000
midpoint of $590,000 to $620,000
Movement
+$60,000
+11.1% in six months
Area reports
The property
| Configuration | 3 bed, 1 bath, 1 car |
| Land | 667 sqm corner block |
| Condition | Renovated internally |
| Rent at review | $385/wk, against a market range of $400 to $420/wk |
| Gross yield at purchase price | 3.7% at $385/wk |
How the estimate was made
At the six-month review I ran a comparable-sales appraisal using professional property data. The range of $590,000 to $620,000 comes from like-for-like sales nearby. The closest comparable was an unrenovated house that sold for $590,000 the month before, and this one is renovated. This is an estimate, not a formal bank valuation. An 11.1% move in six months is about 22% a year only if you annualise it, and the arithmetic is not a forecast.
The client brief
An interstate couple buying their first investment property. The aim was growth first, to bring the second purchase closer, with cash flow to follow over a 10 to 20 year pathway. A house on a large block in Ballarat fit a price under $600k.
James's noteOne result on one property. Rent was below the market range at review, which is the other number to watch. It is a data point, not a promise about the next property.