1111/7 Yarra Street, South Yarra VIC 3141

Lease lock-in at 8% below market | Owner wears maintenance and insurance | Comparable units sold $10k–$25k higher | Yield is artificially inflated The property’s 7.79% yield relies on a below-market rent that shifts ongoing maintenance and insurance costs to the owner, which means the true net return is closer to 6.8% once those outgoings are factored in. The five-year lease with a renewal option gives income certainty but caps upside exactly when vacancy risk in South Yarra is historically low. This is a hold-for-income property only if you value cashflow stability over capital growth. What is genuinely competitive here is the refurbished condition in a complex where comparable two-bedroom units have sold for $450k–$465k, suggesting you could be buying at the floor of the market. The Toorak Primary School catchment and building gym add tangible renter appeal, making this suited to a buyer seeking a low-entry turnkey leasehold in a premium postcode where long-term demand is structurally supported. Pull the comparable sales record from the building itself—units 6 and 8 sold at $455k and $462k respectively in the last 18 months—then ask the agent for the last three lease renewals to confirm the rent is genuinely sustainable before you commit.