Brisbane duplex at A$957,600 and A$5,890/month — does the yield hold up?

[SunnySignal]

The 7.4% gross yield looked strong until I tested what happens when one side of the duplex is empty. That made the A$5,890 monthly rent much less reassuring.

The Brisbane property is a 5-bed duplex priced at A$957,600. I am using no appreciation in the base case, and the building looks sound from the information available. My figures include routine upkeep, management, a vacancy allowance and a separate contingency for a substantial repair.

I am less confident about insurance, council or other property charges, and the real cost of changing tenants. Is A$5,890 credible only with both parts continuously occupied, and which local expense would you increase first? I want to know whether the net cash flow still works under a vacancy and repair stress test before choosing a target return.

 

[luca_figures]

Insurance is the line item I’d stress first, followed by council and other property charges. I’d also separate vacancy from turnover costs: even a short gap can come with advertising, management and minor work before the next tenancy. Rather than choose one target net yield, I’d want the deal to remain cash-flow positive after increasing those assumptions and allowing for a larger repair.

 

[rowan_slate]

I’d be cautious about setting a net-yield hurdle before financing is included. A respectable property-level return can still become uncomfortable if borrowing costs rise or the loan structure changes the monthly cash flow. Also, is the A$5,890 based on current leases or an estimate, and does it assume both parts of the duplex stay occupied? Those details matter more than the 7.4% headline.