1 Union Street, Mount Gambier SA 5290

tenancy locked in below market | condition risks from 1955 build | utility costs eat into yield | no major overlays or hazards The decision here turns on the tenancy. Rent at $365/week sits under current market appraisal of $380, leaving a modest gap of roughly $780 annually against potential. But the lease runs until May 2027 with a scheduled increase to $385 in 2026, which means immediate upside is capped unless you occupy or negotiate a vacancy. The 1955 structure carries maintenance risk on the building envelope and services, though the recent refresh on finishes, kitchen, and heater mitigates cosmetic deferral. On yield, holding at $380 weekly against a purchase price in the mid-to-high $300s lands around 4.8 to 5.2 percent gross, which is solid for a regional duplex without flood or fire exposure. This property works best as a buy-and-hold for a landlord who values a defined tenancy over vacancy risk. The competitive case rests on three things a 721-square-metre lot in a growing suburb offering subdivision optionality over time, a 2027 lease exit that aligns with rent cycle resets, and the fact no heritage or hazard overlays limit future changes. For a buyer seeking low-heat cash flow with a forced savings component, this duplex is positioned near amenities and schools while undercutting newer stock on price. Tenants fund the holding cost while the lot value does the work. If you want to move quickly, instruct your conveyancer to run a building inspection on the 1955 structure and confirm the tenancy records before writing an offer.