7% rental return or above, is it possible?

[Ozblonde]

Its all about cash flow these days, for me.

Thinking inner Brisbane? Areas attracting quality tenants.

Will have approx. $450,000 to spend.
Cheers

 

[D_One]

In inner Brisbane? Not possible. In Logan, very possible.

 

[Rixter]

Possible in a serviced apartment (ie quest etc) but it really depends on your chosen investment strategy.What you want the property to do for you.

 

[Ozblonde]

Thanks for replying.
Logan? Not in the know about Brisbane. What suburbs? Unit or house?

Noticed on TV , read in Newspapers high crime in parts of Logan?
I had a squatter tenant last year, the emotional and financial stress was far too taxing.
Cheers

 

[alexlee]

I had a squatter tenant last year, the emotional and financial stress was far too taxing.

Were you self-managing?

 

[mikezen]

Plenty of good tenants in Logan, get a good pm, however I think growth prospects would be better closer in…

 

[see_change]

Last cycle we bought at bottom of the market . Got bottom of the market tenants ....

Don't buy bottom of the market . Buy a couple of steps up.

Cliff

 

[D_One]

Plenty of good tenants in Logan, get a good pm, however I think growth prospects would be better closer in…

Not that I'm advocating Logan side or anything, but the growth in Logan has been resonable and comparable to inner city Brisbane.

Since 1996 to 2013 the average growths are:

Logan Central: 8.26%
Kingston: 8.52%
Morningside: 9.04%
Annerley: 8.65%
Wooloongabba: 8.65%

The only standout performer is West End at 32.64% (Stunning!!!).

 

[quoll]

If you chasing a good rental return maybe you have to look outside your chosen suburbs ?

OR
Spend more time looking for those ODD, properties, the ones that with a bit of effort can produce a good return. The effort can be thought effort it doesn't have to be physical reno effort, some might need a little bit of cash spent on them, some might need a lot. Once you start looking at non standard properties the possibilities are interesting.



Cheers
Graeme

 

[mikezen]

Not that I'm advocating Logan side or anything, but the growth in Logan has been resonable and comparable to inner city Brisbane.

Since 1996 to 2013 the average growths are:

Logan Central: 8.26%
Kingston: 8.52%
Morningside: 9.04%
Annerley: 8.65%
Wooloongabba: 8.65%

The only standout performer is West End at 32.64% (Stunning!!!).

Would be great if this continues, in logan especially as its in my interest, but I would still be putting my money on suburbs closer in (at this time anyway) for obvious reasons

 

[china]

Try dual occupancy on the Central Coast.

http://www.realestate.com.au/property-house-nsw-niagara+park-114566439

7.3% yield

 

[see_change]

Try dual occupancy on the Central Coast.

http://www.realestate.com.au/property-house-nsw-niagara+park-114566439

7.3% yield

Considering the interest in that property , doesn't sound like it will go for that ....

Cliff

 

[mikezen]

How about something with NO interest at 10.5%

http://m.realestate.com.au/property-house-nsw-south+grafton-114467043

 

[mikezen]

58% yield

http://m.realestate.com.au/property-unit-qld-beaudesert-109267301

Rent slightly unclear wether weekly or fortnightly

Weekly would be good lol

 

[D.T.]

850% return

http://www.realcommercial.com.au/property-offices-qld-maryborough-500609627

 

[Tim86]

Just do share accommodation around a university. Get a cheap house with lots of bedrooms and rent per room. You'll get 7%+

In one of mine I get 9% rental return. That's a comparison rate to other rental properties as I've already deducted the costs of electricity and water and internet that normally aren't included in other rental properties.

The other one I get 10.5% rental return.

Spend $450 000 on a 5 bedroom house. Rent per room to students for $160 per room including bills and internet. Bills and internet will be worth about $22 per person per week. So net income = $690 per week. = 7.9% rental return.

 

[D.T.]

Just do share accommodation around a university. Get a cheap house with lots of bedrooms and rent per room. You'll get 7%+

In one of mine I get 9% rental return. That's a comparison rate to other rental properties as I've already deducted the costs of electricity and water and internet that normally aren't included in other rental properties.

The other one I get 10.5% rental return.

Spend $450 000 on a 5 bedroom house. Rent per room to students for $160 per room including bills and internet. Bills and internet will be worth about $22 per person per week. So net income = $690 per week. = 7.9% rental return.

What are they like to manage?

 

[china]

Considering the interest in that property , doesn't sound like it will go for that ....

Cliff

But interestingly I am finding a fair few 6.5% yields on the Central Coast, in the prosperous southern Central Coast too. These are being snapped up faster than hot cakes. I don't what this means about the Central Coast market - is it a good thing?

 

[Tim86]

What are they like to manage?

No real issues. There are fixed tenancy agreements in place. But the good thing is you're never without at least some of the house rented because 5 people never move out at once. Occasionally you'll get one or two move out at the end of a an agreement but you're only losing 2/5ths of the rent when with a normal tenancy if your tenant moves out that's it.

 

[D.T.]

No real issues. There are fixed tenancy agreements in place. But the good thing is you're never without at least some of the house rented because 5 people never move out at once. Occasionally you'll get one or two move out at the end of a an agreement but you're only losing 2/5ths of the rent when with a normal tenancy if your tenant moves out that's it.

Do you have a PM do it ? Or PM's won't touch that sorta thing?