25 Merrol Street, Highfields QLD 4352

Large block with shed | rental yield under 4% | no flood or bushfire overlay | suburban growth story intact The core risk is yield compression. At a purchase price near $1.1 million the weekly rental range of $655 to $800 produces a gross yield of just 3.0 to 3.8 percent before holding costs. That leaves the buyer dependent entirely on capital appreciation which Highfields has delivered at 21.4 percent but past performance carries no guarantee. The offsetting opportunity is the 2508 square metre block with a three bay shed and second living space, rare for this price point. These features support dual living or extended family use, improving long term holding economics. The judgement call is that this property works as a hold for owner occupation with a tilt toward future subdivision or a future sale but not as a near term rental investment. Competitively the strength is the land and shed package. Comparable sales in the immediate area show a 1.23 hectare lot off market at $1.343 million making this block appear reasonably positioned for its size. The 9 by 6 metre powered shed and secondary living area give a buyer negotiating leverage on price because those features are not easily replicated. This property serves a buyer who wants space for vehicles or a home business and is willing to trade rental yield for site control. The next step is to inspect the shed and confirm it is structurally sound then compare the block to others on Merrol Street to assess if a planning application for a second dwelling is feasible.