Lol. I just wanted to know whether getting between $300-$320 pw for a house I paid $317000 for is good or not
Good Rental Yield?
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Lol. I just wanted to know whether getting between $300-$320 pw for a house I paid $317000 for is good or not
Lol. I just wanted to know whether getting between $300-$320 pw for a house I paid $317000 for is good or not
Does it pay all your outgoings?
Has it further development potential?
Dave
Yes, I believe after all expenses (based on $300 rent), I'm out of pocket $14 pw.
And yes, there is lots of development, currently and in the near future.
Is that ALL expenses or just the loan?
Dont forget rates and insurance, maintenance, management, vacancies etc
IO repayments on $317k are $1254/mth @ 4.75% (close to your numbers)
http://www.stgeorge.com.au/calculators/homeloan/loanrepayjava.asp
but what about the average rate of around 7%? Thats $1849/mth, a shortfall of $162/week
or 10% IR it's $2641/mth, a shortfall of $360/week
Lets forget about P&I for now
Cool
Dave
Yes, that's where I'm out of pocket $14 pw.
IO repayments on $317k are $1254/mth @ 4.75% (close to your numbers)
http://www.stgeorge.com.au/calculators/homeloan/loanrepayjava.asp
but what about the average rate of around 7%? Thats $1849/mth, a shortfall of $162/week
or 10% IR it's $2641/mth, a shortfall of $360/week
Lets forget about P&I for now
Rates will drop before they will rise. I will just have to keep a close eye on them
why do people not include outgoings in thier yield calcs?
include all income pa, minus the outgoings, divide by the purchase price - THATS your yield.
include all income pa, minus the outgoings, divide by the purchase price - THATS your yield.
That is your nett yield - yes, correct.
The reason that gross yields are almost always used is that the nett yield will depend on your own particular costs, especially of money. e.g. I pay 1% above because I'm low-doc. She pays less because she has a Pro Pack etc.
Costs will also depend on the deposit % you put in and whether or not you have to pay LMI.
If you are quoted gross, you just need to know your own individual costs and you can do the sums from there.
Gross yield is just the weekly rent x 52 divided by the purchase price x 100% and any REA or buyer can do those maths........admittedly some still cannot.
I'm with propertunity on this one.
When comparing properties:
Calculating net yeild required too many arbitrary variables that are unique to each individual's circumstances.... however calculating gross yeild will be constant no matter who is looking at the property in question.
HOWEVER, when analysing your OWN personal finances - I agree that net yield should be what you calculate. I do this myself by analysing my cashflow - i believe it is more prudent to know your cashflow rather than know a specific net yeild %.
When comparing properties:
Calculating net yeild required too many arbitrary variables that are unique to each individual's circumstances.... however calculating gross yeild will be constant no matter who is looking at the property in question.
HOWEVER, when analysing your OWN personal finances - I agree that net yield should be what you calculate. I do this myself by analysing my cashflow - i believe it is more prudent to know your cashflow rather than know a specific net yeild %.
