Doxa
Without seeing the property - it makes it a bit difficult to provide any meaningful comment.
BUT, if you can pick up a 2 bedroom unit in Kew with a car space and no reovations required for $440,000, I would have thought you're doing well, especially if it's renting for $380. Those numbers sound good for Kew.
A word of caution, which I'm sure you've considered, Kew has had massive capital growth over the last 12 months - that might mean that it will stagnate for a while - although you can never be sure.
Also, I've had some bad experience with bank valuations on two properties lately - both of them came in around $50,000 under what I consider to be "market value". I took from this that banks are tightening their lending policies and that valuers are being very conservative with their valuations.
That's a rental yield of 4.4%. That doesn't ever sound good to me.
Assuming the entire amount is borrowed to buy (most people aren't buying $440k IP's with 20% SAVED deposit - equity in other property usually),
assume 5% purchase costs (general, but reasonably accurate),
assume the finance is 8%,
assume that 15-20% of the rent will be eaten by holding costs.
The weekly shortfall on the cashflow is: -$387 before tax return. -$20,164 per year.
If the apartment only sees 5% cap growth every year for the next 5 years (quite possible and probable, but could be less if the property market stalls) then the nett return on the investment is $1,836 before tax return.
It's an apartment, so there won't be an enormous amount of depreciation, and we don't know it's age anyway at this stage. Could be none.
That's a very poor return for an outlay of $300 odd dollars a week.
The C.O.C on the money is 11.7%.