The new investor playbook: owner-occupier homes with investor yields
Ten townhouses at Bayside, Frankston, from $885,000 and 400 metres from the beach, with gross yields of 4.13% to 4.47%. Invest today, sell to an owner-occupier tomorrow.
Has the property investment playbook changed? Possibly, with the tax changes in the May Budget. From 1 July 2027, an established home bought after Budget night can no longer be negatively geared against wages. New builds keep full negative gearing, and the choice of the 50% capital gains tax discount. So savvy investors are now asking about their exit, and often favouring owner-occupier grade homes over high-yielding investment stock.
In rare instances investors can have both. Bayside Townhouses is one of these opportunities.
Gross yields run from 4.13% to 4.47%. Unit 7 at $885,000 costs about $148 a week to hold after tax, and on Frankston's long-run house price growth would build around $1.05 million in equity over ten years. The assumptions are in the calculator below.
These are family-sized homes in a go-ahead suburb, 400 metres from the beach. So when the time is right to sell, there will be a queue around the block on auction day.
Unit 7 at $885,000, held as an investment
- Out of pocket, a week
- $148
- Cash to complete
- $231,761
- Equity after ten years
- $1,052,484
- Return, ten years
- 11.7%
- 20% deposit ($177,000) and 6.20% interest, interest only for five years
- an investor on $120,000 a year, including the Medicare levy
- held 10 years, let at 2% vacancy with 7.7% management
- capital growth of 7.1% a year, which is Frankston house medians from the Valuer-General, 2014 to 2024
Location
Frankston · Inherited from the estate — schools, retail, transport and employment within reach.
| John Paul College | 1.2 km |
| Kananook Primary School | 1.2 km |
| Frankston Primary School | 1.5 km |
| Building a world class hospital for Frankston families (under construction) | 1.2 km |
| Frankston station | 900 m |
| Kananook station | 1.7 km |
This lot's position
