Quiz: Guess the Sydney Suburb with the lowest rental yeild?

Guess which Sydney suburb has the lowest rental yeild ?

  • Bellevue Hill

    Votes: 6 33.3%
  • Beverly Hills

    Votes: 2 11.1%
  • Hunters Hill

    Votes: 4 22.2%
  • West Pennant Hills

    Votes: 3 16.7%
  • Terry Hills

    Votes: 3 16.7%

  • Total voters
    18
  • Poll closed .
Hi,

I know absolutely nothing about the Sydney market, so guessed the top one for good measure ;)

Please let me know if / where i can collect my prize :p

-Regards

Dave
 
For Houses:

Bellevue Hill 2.72% ( $1,215 pw avg)
Beverly Hills 3.29% ( $290 pw avg)
West Pennant Hills 3.30% ( $370 pw avg)
Terry Hills 4.07% ($505 pw avg)
Hunters Hill with a massive 2.61% ( $570 pw avg)

And the suburb with the lowest rental return in Sydney is
Mosman with an 2.38% return ( $720pw),



Can any give any examples outside Australia of worse (lower) gross rental return figures for residential property than Hunters Hill or Mosman?
 
The rental return in Sydney is gowing down so fast, we can soon end up paying the tenants to live in our properties so that we can still claim expenses as tax deductions. That's what I call a purified Negative Gearing!

Imagine the add:

A charming house in Mosman needs a professional tenant to occupy its beautiful 4 bedrooms, a lounge room, a dining room, a family room, a rumpus room, 4 marble bathrooms, Italian kitchen, wine cellar, game room, and the 25-m lap swimming pool with magnificent harbour views. Above market salary will be offered to the right candidate. Please call 02 xxxx yyyy for an application form which will be sent to you accompanied by a cheque for $500 in appreciation of your effort to fill the form out.

Cheers,
Lotana
 
Lotana,

I couldnt agree more, at an "average" of 2.38% , I guess that would mean that almost 30-40% of houses are returning less than 2%. Since 2% represents about the cost of rates and general repairs why bother asking for rent?

In effect today's reality not so much different to this

"Free to Rent: A charming house in Mosman needs a professional tenant to occupy its beautiful 4 bedrooms, a lounge room, a dining room, a family room, a rumpus room, 4 marble bathrooms, Italian kitchen, wine cellar, game room, and the 25-m lap swimming pool with magnificent harbour views. Tenant pays basic outgoings"
 
One thing to remember about these figures is that they are for those who buy into the market today (or the last 3-6 months).

Others who have held their properties for any longer then 2 years then these returns will be higher, and those who have held these properties for 10 years will have even higher returns then the current 2-4% junk.

I think yes, that the rental yields in Sydney are woeful when you look at them when written down. However you still need to look into the depths of what the figures don't say.

If any property market crash occurs from investors not being able to service thier mortgages and can't afford to hold their properties, who will be the first squeezed out of the market. To my mind it will probably those who were the last in and have the lowest rental yeilds (unless they have high disposible income to sustain the down turn).

Anyway, enough rambling for another month.

Cheers
Robert
 
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