Friend just sold her Sydney Eastern suburbs IP for a rotten price! It's right NEXT DOOR to mine on the top floor of a beatiful Art Deco block. She accepted $485K. Out of the 8 properties for auction yesterday evening NONE reached their reserve and I think only 3 sold. I thought the value of my unit was around $520K. So did she! I have no intention of selling so not an immediate issue.
The good news is that the rent she commanded for this IP exceeded my expectations at $440/week. I have just re let another eastern suburbs IP where I did not have to advertise and received an additional $20 per week with no vacancy. A big change in my experienes throughout 2004 and some of 05.
So "my area" is experiencing some challenges in sales prices but opportunities in increasing rents. In this example we have approached a 5 % gross yield (well, 4.7 to be exact).
I reckon this "trend" of falling price, rising rent will continue in the east and if so yields will look better again. I will be watching VERY closely the next 1 to 2 years for the right opportunities to buy in my "home" area again. Meantime it's all in the equities game...
The good news is that the rent she commanded for this IP exceeded my expectations at $440/week. I have just re let another eastern suburbs IP where I did not have to advertise and received an additional $20 per week with no vacancy. A big change in my experienes throughout 2004 and some of 05.
So "my area" is experiencing some challenges in sales prices but opportunities in increasing rents. In this example we have approached a 5 % gross yield (well, 4.7 to be exact).
I reckon this "trend" of falling price, rising rent will continue in the east and if so yields will look better again. I will be watching VERY closely the next 1 to 2 years for the right opportunities to buy in my "home" area again. Meantime it's all in the equities game...