6% Yield

[hobo-jo]

What is it about this boom that's different? We've gone through bigger booms before

Depends on what measure you use and where you are looking...

Private debt to GDP is now hitting record levels.
Investor share (as %) of loans in NSW at record.
Median price to income ratio at record in NSW.

 

[Sonamic]

Consensus says 7.5% yield is enough for perpetual purchasing?

 

[Peter_Tersteeg]

Consensus says 7.5% yield is enough for perpetual purchasing?

Given that most lenders only take 80% of the rental income and assess debts at over 7% P&I, for perpetual lending, you'll probably need yields of over 9%.

 

[Terry_w]

So things were even easier? Yikes. Alright thanks.

Some brokers used to joke that all borrowers needed were a pulse.

Rumor has it that some brokers even got loans approved for dead people.

 

[Sonamic]

Thanyou Peter.