would there be any places in Sydney can achieve the 9%, considering reasonable CG as well.
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Rubbish.
7% return, before paying other expenses such as council rates and property mgmt fees, can be found in many places. Look at the data tables with rental returns in the back of a copy of Australian Property Investor magazine for an idea on the areas where these can be found.
You will probably need maybe 9% to start seeing positive flow though after expenses, but will depend on depreciation etc.
I don't rely on general, oversimplified property magazines to gauge yields. I am telling you there is no such thing as 7% yield unless you rent out a house on a room-by-room basis. This is assuming you buy the property today.
I don't rely on general, oversimplified property magazines to gauge yields. I am telling you there is no such thing as 7% yield unless you rent out a house on a room-by-room basis. This is assuming you buy the property today.
I'm terrible at figuring out returns...so hoping someone could help me..or show me the furmula.
I have the opportunity to purchase a 3 bedroom home for $2,900 (twenty nine hundred) and for about $8000 it could be quite livable.
After renovation I would be able to rent for $650 month ($7800 pa)
Expenses would be $2200 year
Let's say it is 100% financed at 5%
(Rent - costs)/ purchase price
Rent - 650x12= $7800
Interest - (2900+8000)x5% = $545
Puirchase price = $10900
[(7800-545-2200)/10900]x100 = 46.38%
That's an incredible figure, is that in any way typical for properties in the area?
I'm terrible at figuring out returns...so hoping someone could help me..or show me the furmula.
I have the opportunity to purchase a 3 bedroom home for $2,900 (twenty nine hundred) and for about $8000 it could be quite livable.
After renovation I would be able to rent for $650 month ($7800 pa)
Expenses would be $2200 year
Let's say it is 100% financed at 5%
Those opportunities are there if you search them out, and willing to renovate a bit. This is a low price and I'm just waiting for May to look at it in person.If it's gone, there will be another deal.
This wouldn't be our first property at this price...or return.
However just to clarify, this is in Canadia right?
I don't rely on general, oversimplified property magazines to gauge yields. I am telling you there is no such thing as 7% yield unless you rent out a house on a room-by-room basis. This is assuming you buy the property today.
Yes, it is...but the returns would still be the same for us.
that is a very big call to make
Those opportunities are there if you search them out, and willing to renovate a bit. This is a low price and I'm just waiting for May to look at it in person.If it's gone, there will be another deal.
This wouldn't be our first property at this price...or return.
Yes, it is...but the returns would still be the same for us.
This is why we have decided not to invest in Australia..we can make money from day 1 there.
If you invest in that type of thing it ceases to be a 'rental return' but it's more like a business. You have to distinguish