Any Cashflow Neutral Opportunities in Sydney?

[dajackal]

I'm currently looking for opportunities to purchase a unit in sydney, walking distance to train station, newish, high rental returns with decent demographics.

Are there any good websites that can quickly list out the rental yields by suburb?

 

[Propertunity]

Are there any good websites that can quickly list out the rental yields by suburb?

http://au.investsmart.com.au/property/search.asp
will give you yields - but like any stats are averages - and averages can only do so much.

 

[Phiber]

You already have a pretty decent idea of what you are looking for.
If you also have some sort of budget, then you can look along the train lines in the parts if Sydney you can afford and see where you have new builds and fr how much they rent.
Cheers

 

[dajackal]

Thanks buddy. I suppose what I'm looking for is a way to shortlist the suburbs.

Is there an easy way to marry up the new builds with rental yields data?

Just to give you an idea so far on my list is Regents Park and Pendle Hill. Where are the other sydney investors poking around these days?

 

[Rolf Latham]

just finalised finance fora client at for a 825 k purchase yielding 85 000 net passing rent

7 year old comm property with good depreciation, same niche tennant has just signed a new 5 + 5. Property easily used for something different.

70 % funded on comm rate of 6.65 v

35 % funded ( separate security) on resi rate of 5.7 v

This isnt a transaction for someone with limited equity, but fits nicely with later in the accumulation phase for many established investors

There are deals there ...............just not obvious sometimes

ta
rolf

 

[Jake Milne]

The problem with your question is that we don't know your income, tax position, depreciation of the asset, required yield and purchase price.
If I go and pay a 50% cash deposit for a property it's likely to be +CF.

With that said if what you're looking for is a source that can show you rental yields by suburb then I'd suggest buying any one of your Property Investment magazines.

Depending on your leverage, expected outgoings and interest rate I'd suggest looking for yields that are >6% which, depending on your circumstance, should be close to neutral.

If you're willing to pay some money try the website realestateinvestar
It's a search engine that can help mum and dad investors find property as per chosen strategies.

 

[dajackal]

The problem with your question is that we don't know your income, tax position, depreciation of the asset, required yield and purchase price.
If I go and pay a 50% cash deposit for a property it's likely to be +CF.

My bad.
-37% marginal tax
-purchase price of $300-400K for a 2bedroom unit + LUG
-walking distance to train station and close promixity to parramatta or sydney CBD
-20% deposit + purchasing costs
-6+% yields
-ideally less than 5 years old which hopefully will mean 6-10K in depreciation

any thoughts or comments on the above strategy would be greatly appreciated

 

[bits1010]

you can, but you probably will be a slumlord.

like those people who own / rent a large 3 bedrooms apartments in Sydney CBD, put bunker beds in each room, sub-divide the living room to put in another,

8 sources of income for 200-250 per week each, that's 1,600-2,000 per week.

I don't think councils have authority to get entry without permission, coz they are not the police.

 

[Noodle]

My bad.
-37% marginal tax
-purchase price of $300-400K for a 2bedroom unit + LUG
-walking distance to train station and close promixity to parramatta or sydney CBD
-20% deposit + purchasing costs
-6+% yields
-ideally less than 5 years old which hopefully will mean 6-10K in depreciation

any thoughts or comments on the above strategy would be greatly appreciated

The requirements seem fine and would appear you have a similar approach to what i've also been using of late. Unfortunately i'm not gonna just hand suggestions out on a plate as I fully intend on buying more like this in this particular area myself, but I would say what your looking for is VERY achievable. You may even want to push yourself a little, as cash flow neutral is possible on the above requirements in Sydney at 100% financed and yields of 7%. Remember these websites are only giving you average yields, its your job as an investor to buy above average.

 

[Jacque]

-37% marginal tax
-purchase price of $300-400K for a 2bedroom unit + LUG
-walking distance to train station and close promixity to parramatta or sydney CBD
-20% deposit + purchasing costs
-6+% yields
-ideally less than 5 years old which hopefully will mean 6-10K in depreciation

any thoughts or comments on the above strategy would be greatly appreciated

We know Parra and surrounds well and have bought for several clients in the high $200K's- $400K's range. Units and townhouses with most returning 6%+ gross yields. I like Pendle Hill (good choice) Wenty and Harris Park- do a search on the forum for those suburbs and you'll find plenty of reading material. Best of luck with it all.

 

[Jake Milne]

-37% marginal tax - Negative Gearing offset is a good idea at this rate.
-purchase price of $300-400K for a 2bedroom unit + LUG - Also ensure that you have outside space and something that has an 'x' factor.
-walking distance to train station and close promixity to parramatta or sydney CBD good.
-20% deposit + purchasing costs I like that you're avoiding LMI, assisting your CF position and reducing your risk with this
-6+% yields With 20% down and good depreciation you may be able to go lower with your yield in favour of better CG
-ideally less than 5 years old which hopefully will mean 6-10K in depreciation

The only thing I'm concerned with the above criteria is if you're specifically looking for newish builds they may be in pro-development areas or busier streets as that's where council likes to see this activity.

Finding something with great depreciation is a good thing to have but stay away from any roads on Google Maps that are orange or yellow.