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Yield is a measure of the percentage of income return you get from an asset. Gross rental yield (i.e. before expenses) The yield is calculated by dividing the gross annual rental income by the purchase price (or the current valuation) e.g. Rent = $400pw Purchase Price = $400,000...

Hi Engelo, I have also started looking at Mildura. Mind sharing your experience in terms of location (where to look at and avoid) and the general feel of the community? Thanks in advance. Kenny

Don't disagree with you in general re the Western suburbs. But there has been a significant reduction in the level of net immigration and other forms of temp visas (student and working) into Victoria. Also the strong AUD and higher interest rate are not helping in terms of direct foreign...

Thanks zed_kid. I'm a strong believer that smart investors can take advantage of any phase in the market cycle. Provided investors have a long term perspective and have the ability to hold onto their properties, property investment is still an attractive investment option. However, investors...

Good point, Meconium. My thoughts: 1, The level of First home buyer (FHB) activity is relatively low at the moment (AFG reported FHB comprised ~15% of all loan applications - from between 30-35% last year). This is probably due to the fed and state government stimulus (e.g. FHOB) last year...

forumite, You may find this useful: http://data1.reiv.com.au/trendchart/default.aspx Cheers, Kenny

Thanks Pete. Sounds reasonable and logical - 250K is great value. I'll check out the location. But ultimately, I'm looking for high capital growth, rental yield is secondary.

Don't necessarily have to over think it - at least not for the first one. However, it's always go to have a general idea of how the plan is going to be executed up front, so you have the flexibility to adjust it as events unfold. I have/had a similar plan around 5 years ago when I started...

Again, the Capital growth property approach is only superior if you have sufficient serviceability to sustain the investment properties. Being too negatively geared without sufficient serviceability means you may eventually run into a brick wall obtaining finance for future properties (via...

Although I'm still very inexperienced, take it from me that this business can be time consuming, frustrating and incredibly boring a lot of the time. It requires focus and drive. The challenge is to be prepared, recognise the opportunity and pounce on it before other people has a chance...

Thanks hairyhouse. I saw your other thread - why Christies Beach and what are the reasons behind the potential capital appreciation?

Hi all, I'm a long term property investor and developer. I have properties in Victoria and Queensland. Melbourne market has been cooling, so I am now considering Adelaide. It will be great if the local property gurus can share experienced investing in Ade - where should I be looking at, the...

Your investment objective is bit vague. Are you intending to live off the rent in 10 years' time or do you just want passive income as a supplement to your existing salary? I see that you have done your analysis to come to the conclusion that capital gain may be a better option for you...

If renovating, subdividing land and building a house will only achieve a 11% p.a. long term return (i.e. 7% capital growth and 4% rental return), then I must not be doing it right. Australian residiential properties have been doubling (on average) every 10 years (or 7.2% p.a.) for the last 60...

I understand where you are coming from, and your concerns are quite valid. Every individual will have to do their own cost and benefit analysis to determine if loc doc loan rate will provide a decent return. There are businesses willing to use credit at 18% p.a., or credit card at >20% p.a. As...

No need to apologise, we all have lives outside of this forum!! Some more so than the others. :) I still haven't been to Vegas, sounds like I'm missing out, but I'm still waiting for one of my ex-es to come knocking on my door demanding for a shotgun wedding. :P I'm on a business trip in...

I have an investment property in Sunshine North. Sunshine has shown some incredible growth in the last couple of years. It's close to the city and heaps of infrastructure project going on the West. I suspect there will be steady growth in Sunshine/Sunshine North/Braybrook area for the...

There are two components to your question: 1, You have rent out your "PPOR" for 9 months Depending on the circumstance, you may be able to use the 6 years rule (aka the absence rule). The tax law (ITAA97) and the ATO recognises that individual circumstances change. They allow home owners to...

You may find this informative: http://www.ato.gov.au/individuals/content.asp?doc=/content/36907.htm In short, Yes. It is likely that you will be liable for some Capital Gains Tax, but it depends on your individual circumstance.

Hi John, I am not entirely sure. But as the example suggested, the ATO is likely to accept several quotes from Real Estate Agents (possibly an average of the quotes) and professional valuers. However, this would require that you have already done this as you purchased the property in 1990. If...