Hi,
Long time reader here, and have finally decided to take the dive into IP's.
When purchasing an IP, should the price of the property be estimated from the rent it yields? For instance, if the place is returning $1650/month, should I be using that figure to calculate what I should be paying for the property?
This is a very inner city property, so I do realise yield will be less, but I am looking at future capital gains.
Kevin
Long time reader here, and have finally decided to take the dive into IP's.
When purchasing an IP, should the price of the property be estimated from the rent it yields? For instance, if the place is returning $1650/month, should I be using that figure to calculate what I should be paying for the property?
This is a very inner city property, so I do realise yield will be less, but I am looking at future capital gains.
Kevin