Syd 4.58% nett vs Brisbane 3.7%

[Ridin-High]

Hi all,

Situation

2 properties in south west syd, 1 in west syd.

After land tax yield on new place in south west syd of 4.58% nett (after expenses) gross yield circa 6.5+

3.7% nett in brisbane (under land tax threshold). 5.2% gross

I research myself in syd, i have a B.A for qld (on retainer)


Want to know what other property investors think about concentration risk (having all places in similar area)

Regards,

RH

 

[Rixter]

Like with all forms of investing its about maximising your cash flows and minimising your risks.... as such I minimise my portfolio's area exposure risks by spreading our properties across various suburbs around Australia.

Its part of our portfolio's big picture.

 

[Ridin-High]

good to see your imput rixter, actually been looking at some of your older posts recently in regards to townhouses/villas.

I'd be forgoing 0.88% nett yield by buying in QLD, but i minimize the comounding land tax problem. I also have the additional loses subsidized by govt and spread the risk so to speak (not having all eggs in one basket)

YPI has brisbane listed as buyers market.

API has syd @ bottom of market and QLD in decline.

Obviously im trying to figure which is due for short-med term growth


Ps. Congrats on your syd purchase

 

[Propertunity]

Like with all forms of investing its about maximising your cash flows and minimising your risks.... as such I minimise my portfolio's area exposure risks by spreading our properties across various suburbs around Australia.

^ ^ agreed.

Imagine holding all your property in Sydney from 2003 - 2008 or holding all your property in Perth for the last few years?

Spread the love around. That way as different cities are in different parts of the cycle at least some property, somewhere will be going up

As a Land Tax strategy, it may or may not ultimately work out. The Henry Tax review suggested a broad-based land tax regime, but this could be some years off (or never).

 

[Rixter]

Thanks RH.....which posts were you specifically looking for? My property investment strategy?

 

[Rixter]

Spread the love around. That way as different cities are in different parts of the cycle at least some property, somewhere will be going up

Thats the plan. Its worked extremely well for us over the past 10 years..all our earlier acquisitions doubled & tripled in value....also minimises portfolio land tax.

 

[Rixter]

Obviously im trying to figure which is due for short-med term growth

Here's what I do....

I look to buy in areas under gentrification. I look to where the Govt, Commercial, Retail & private sectors are injecting money. This ultimately beautifies and uplifts the area. People like the appearance / feel so move in creating demand.

I've found this strategy works very well for attaining short to mid term capital growth so as to leverage against and build your portfolio ASAP.

I hope this helps.

 

[Gools]

RH, have you considered any other capital cities? Why you would accept 3.7% instead of looking elsewhere is beyond me.

 

[Ridin-High]

cheers for the thoughts fellas.

Yeah rixter, it was ur investment stratergy. But i have already found it

 

[Ridin-High]

RH, have you considered any other capital cities? Why you would accept 3.7% instead of looking elsewhere is beyond me.

thats 3.7% nett or 5.2% in gross terms (which most property investors use)

6.61% gross in southwest syd, 4.5X after land tax and other costs