High yielding areas

[HotRod]

That is just about every property in Australia, barring a few big CBD towers.

With that type of money at your disposal, the world is your oyster.

You should be able to get a decent 11% net yield and a world class Tenant on a huge 20 year fully guaranteed Lease with that level of money.

Good stuff - go to it !!

Outstanding. Everyone bar one missed that minor point.

 

[james110]

Thanks for all of your suggestions/help.

Im just looking for some ideas im not going to try and hold someone to ransom because a potential lead doesnt work out.

The property i had was on the Central coast Nsw and it was a complete basket very little growth over 12 years.

I just looking for rental income to live off, already done capital gains route and made my money so to speak.

Shares, things are abit too volatile for me too jump in at the moment,i have defianetly looked at it though,when things look a bit better in this area i will jump on it.

 

[alexlee]

The property i had was on the Central coast Nsw and it was a complete basket very little growth over 12 years.

I just looking for rental income to live off, already done capital gains route and made my money so to speak.

Shares, things are abit too volatile for me too jump in at the moment,i have defianetly looked at it though,when things look a bit better in this area i will jump on it.

And you think high yielding property such as mining towns when mining may have peaked and regionals that are more dependent on individual industries to be less volatile..... why?

Do you have a view of 'when' shares will be good to get into, or at least a set of conditions, e.g. when PEs are a certain level or interest rates are at a certain level or whatever for when you buy share.

 

[james110]

I generally use technical analysis,to analyse the best entry point into the stockmarket.

Im not talking about towns based solely on one industry.

I am certain there are such areas that achieve this return,without being based on one industry Eg;Frosting doughnuts or picking truffles.

I am just trying to locate these possible areas.

You seem to have a different opinion.

 

[knightm]

Hi,

http://yahoo.realestate.com.au/property-duplex+semi+detached-nsw-cobar-114354651
Would I invest there maybe or not but achieving higher yields mostly will give very slow capital growth.
Macca446

I heard that there have been recent slowdowns there resulting in over 100 contractor employees being out of work. That would hurt the town.

 

[Pins]

I generally use technical analysis,to analyse the best entry point into the stockmarket.

Im not talking about towns based solely on one industry.

I am certain there are such areas that achieve this return,without being based on one industry Eg;Frosting doughnuts or picking truffles.

I am just trying to locate these possible areas.

You seem to have a different opinion.

Just pick up a copy of API magazine and look at the average yields listed in the data section at the back. It's a good place to start.

 

[Cherry Pro]

You might like to consider the western sydney area (2770), campbelltown and the logan area in brisbane for those returns, James. Do a search here for those suburbs and do your own due diligence.

 

[rockDr]

I generally use technical analysis,to analyse the best entry point into the stockmarket.

Im not talking about towns based solely on one industry.

I am certain there are such areas that achieve this return,without being based on one industry Eg;Frosting doughnuts or picking truffles.

I am just trying to locate these possible areas.

You seem to have a different opinion.

You were invested in an area that has potential for these sort of returns.

North Gosford was shown in recent property magazines as been potential for cash flow positive properties.

Typical around 6.5-7% gross rental yields on resi around Gosford.

Otherwise your 200k isn't going to get a lot in W Sydney?

 

[james110]

I pulled out of the area because it was a bad investment decision.

Demographic would have to change in gosford a lot,have you been down the main street in town recently it is absolutely Kaput.

The council keeps trying to re-vitalise the town but it never eventuates.

I dont personally see growth there for a long time the drivers just arent there.

Very slow and patchy growth up there.

 

[rockDr]

I pulled out of the area because it was a bad investment decision.

Demographic would have to change in gosford a lot,have you been down the main street in town recently it is absolutely Kaput.

The council keeps trying to re-vitalise the town but it never eventuates.

I dont personally see growth there for a long time the drivers just arent there.

Very slow and patchy growth up there.

Demographic is changing. Quite rapidly too. I have been down main street in Gosford, and funnily enough it was a massive change to what it was 10 years ago.

Wyong I understand, but Gosford is changing for the better.

Rents have increased, pushing a lot of riff raff out. There is very high demand from commuters.

Not sure what growth drivers you are looking at, maybe you should have a look at your demand supply indicators for any suburb around Gosford and the recent sales.

Where was your ip previously?

 

[redwing]

The property i had was on the Central coast Nsw and it was a complete basket very little growth over 12 years.

How did it perform yield wise?

I just looking for rental income to live off, already done capital gains route and made my money so to speak.

Great work, do you still have these properties also?

Shares, things are abit too volatile for me too jump in at the moment,i have defianetly looked at it though,when things look a bit better in this area i will jump on it.

Just having a look at a couple of broad index funds over the last 12 months; the US Market is up over 40%, The World (ex US) up over 30% and the Aussie market is up over 20%, not including dividends

 

[JPH]

Relax James.

We just don't want to see you come unstuck, hence the reticence to give you advice.

Yes, it's completely possible to buy in obscure areas - mainly mining towns - and obtain massive yields. But these yields are rarely sustainable for more than a few years.

Imagine this hypothetical situation, if you will:

You spend your hard earned savings to buy a house in Mt Woop Woop, next to Blue Sky Mine's Kryptonite quarry. The bank lends you 80%. A tenant , usually a mine worker, moves in immediately.

The yield is 8%! Great! You are set! Well maybe. Here's what you need to remember:

Although the price of Kryptonite may be strong at the current time, things may change in a decade. Falling prices could result in the mine downsizing or being shut down entirely. It's happened a lot in Australia in the last 150 years.

So what happens if Kryptonite prices fall?

Result:

1. no tenants. zero yield - an empty house for several decades
2. (worst of all) the bank calling-in its loan!
3. ALL house local house prices falling, not just yours.

Mate, if you want yield, learn local council rules and get into the granny flat business in your spare time. Although its unfashionable, it's a lot safer than buying in obscure areas. Guaranteed results, minimal risk if you are a DIY guy and can do it yourself.



Take your time, that's the best advice I can give you.

Look around for exceptional value. You are better off with decent Capital Gain than dodgy Yields that may later come unstuck.

Your advice is great!

 

[james110]

I sold up and i am sitting on the cash.

In 100$ it makes a nice arm chair in 20$ i can get a whole couch out of it.!!!


I had I.p all over the place some in Wow Wow.

10 years is along time i reckon it has another ten or more to go.

Growth on the cost for the last decade in some areas has been very slow.

 

[nhg]

Properties with g/flats can provide great yields, I have a couple of these, closer to 10%.

I am not in favour of building a granny flat to obtain 8% yield, cos you will spend $90,000+ and you can not access equity, dead money.

Yep.

People are going crazy right now. Why build with all the risk, you could buy a place with a granny for 7-8% yields.

Would I suggest it. Nope. Best use the money to buy two blocks of land with a house on it that has future potential.

Also wouldn't touch a place and granny with yields less than 10%+