Whats the ROI on this purchase?

Darling Point apartment with sweeping harbour views sells for $1.78 million

I dont know the sydney rental market very well but if this couple are buying it as an investment whats their ROI going to be? What will be their rental yield?

One would presume a 2 bedder like this will increase in value over the long term????

 

Why not? Location is so significant in this case

 

If they were investing, then they are not on a positive cash flow buy there, that is safe to say, it would have a shocking return if looking at income.

 

Gross rental yield would be 2.62% assuming $900 rent per week as mentioned in the article.

Pretty sick view in any case

 

Here is an example of a basic ROI calculation -