Not fussed about Capital Growth-where to invest for cash flow??

L

leitch1967

Hi all
Just wondering what your opinions would be on good spots to invest with an eye to good rental returns, capital growth not overly important?
 
along with leitch1967 i would be interested in finding out suburbs in melbourne that will give good yield, looking at metro melbourne, it may have to be units as houses with land are usually poor yield in melbourne in particular, i would be trying for 5-6% yield making the investment somewhat cash flow neutral. The CG will come in the longer term irrespective on where positioned.
 
Australia wide, WA has a lot of positive cash flow properties in the mining towns (which might need to be looked at with caution since some are being shutdown temporarily)

- Port Headland
- Karratha

Darwin is probably the next best for +ve cash flow.

Just some suburbs/towns in victoria that are worth a look at

- inverloch
- melbourne (city)
- docklands
- southbank
- clayton (mainly units)
 
Mindmaster said:
A very simple and easy method to find high yield areas is to go into the property suburb search site here http://www.investsmart.com.au/property/search.asp choose the area and type of properties you want (ie houses in vic) and order the results by yield

The result is no 1 8.5% in some place called Dimboola and the list continues
Click to expand...

Dimboola is down on the southwest side of Melb.

Mainly dairy farming community. Don't know the population size, but I suspect it isn't growing much.
 
Last edited:
BayView said:
Dimboola is down on the southwest side of Melb.

Mainly dairy farming community. Don't know the population size, but I suspect it isn't growing much.
Click to expand...

Dimboola is just down the road from me, (I'm in Horsham), it's just off the Western Highway between Adelaide and Melbourne and is wheat country on the edge of the Little Desert, dairy cows would starve and die of thirst here ;). Very quiet, struggling small town, very little industry to speak of. Population about 1000 I think.
 
jizzlobber said:
along with leitch1967 i would be interested in finding out suburbs in melbourne that will give good yield, looking at metro melbourne, it may have to be units as houses with land are usually poor yield in melbourne in particular, i would be trying for 5-6% yield making the investment somewhat cash flow neutral. The CG will come in the longer term irrespective on where positioned.
Click to expand...

Outer suburbs should be able to provide that. ie Melton, Frankston Nth. Not exactly metro, but you can get houses in that range and gross yield.
 
leitch1967 said:
Dimboola is just down the road from me, (I'm in Horsham), it's just off the Western Highway between Adelaide and Melbourne and is wheat country on the edge of the Little Desert, dairy cows would starve and die of thirst here ;). Very quiet, struggling small town, very little industry to speak of. Population about 1000 I think.
Click to expand...

Off topic but I would love to live around horsham/natimuk for the rock climbing :)
 
We're getting 6 % gross on the units we recently bought in Mosman . If you look long enough you should be able to get that in good suburbs .

Cliff
 
Another possibility for cash flow is a room in a managed apartment. We investigated these about ten years ago- at that stage they were returning 10% but the capital growth on them for the previous 10 years had been zero. They were popular with self managed super funds.
 
leitch1967 said:
Hi
Looking at 6% and above, preferably higher, I know it may be a big ask, but you never know if you don't ask the question, so I am :)
Click to expand...

Hi leitch,

I found a 3 brm place in Newcastle in a 12 month old development of 6 villas. Its selling for $329K and gets $390 per week rent = 6.16% gross yield. It will sell by tonight though - 3 lots of buyers interested.

Cheers.
 
geoffw said:
Another possibility for cash flow is a room in a managed apartment. We investigated these about ten years ago- at that stage they were returning 10% but the capital growth on them for the previous 10 years had been zero. They were popular with self managed super funds.
Click to expand...

Do you have any more info on these, geoffw?
 
leitch1967 said:
Do you have any more info on these, geoffw?
Click to expand...
No I don't, I'm sorry. That WAS 10 years ago.

But the ones we were looking at were listed in the property sections of the newspapers, and REAs would have information.

One was a single room which had been privately owned for some years.

There were also two complexes where all units were being sold.

I did a quick Google. Somebody thinks they are not a good investment. And that 10% from then is now 5-6%.
 
We're getting a tad above 7% on a dual occupancy we bought in the
Campbelltown area of Sydney.

Think you could achieve that result in Sydney west and south-west if
you looked.
 
Cherry Pro said:
We're getting a tad above 7% on a dual occupancy we bought in the Campbelltown area of Sydney.
Think you could achieve that result in Sydney west and south-west if
you looked.
Click to expand...

Good on you CP,

You prompted me to see what gross yields we are getting on some of our dual renters: 7.3%, 7.5% and 7.7%. Pretty damn good :) - like yours.

These are all near water / lakes on the NSW Central Coast but I'm sure you can get returns like this in most places (subject to some caveats) ;)
 
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