*** please note that this is only an exercise, I'm not making any offers ***
I was browsing through a real estate magazine (realestateworld.com.au) on the train and came across this ad:
block of 6x2 bedroom units
2 garages, 4 car spaces
corner block, close to everything.
gross anual return $81,640
potential annual return $99,840
Sale price: $1.290.000
my question is in regards to my calculations. I took the gross / sale price which gave me a yield of 6.3%, not something extraordinary for the risk.
Is my calculation correct? I know there are heaps of additional costs associated, but I was just playing to see what the yield was. what would be the minimum yield an experienced investor look when evaluating a block of units like this one?
I was browsing through a real estate magazine (realestateworld.com.au) on the train and came across this ad:
block of 6x2 bedroom units
2 garages, 4 car spaces
corner block, close to everything.
gross anual return $81,640
potential annual return $99,840
Sale price: $1.290.000
my question is in regards to my calculations. I took the gross / sale price which gave me a yield of 6.3%, not something extraordinary for the risk.
Is my calculation correct? I know there are heaps of additional costs associated, but I was just playing to see what the yield was. what would be the minimum yield an experienced investor look when evaluating a block of units like this one?