Tasmanian and Regional Yields

[RightValue]

Hi there,

We are thinking of selling an IP in Tassie. I was wondering what are the going yields for multi unit residential properties (on one title) in Tasmania and regional areas.

Here in Melb they are generally very low, I know that they are higher in the regions and Tassie .

I know that a lot of members have bought IP's in these areas so I am looking for some input from those that know. So what are the yields that people here are buying on in those areas.

Please note that this is not an offer to sell, merely market research,if we decide to sell then it will be posted in caveat emptor.

cheers,

RightValue

 

[Peter Parker]

I know that a lot of members have bought IP's in these areas so I am looking for some input from those that know. So what are the yields that people here are buying on in those areas.

Speaking about regional WA and purchases in 2003/4:

1. Large mining towns: 9%
2. Large coastal centre: 8%

Note that 1. would be neutral or positive (after tax) whereas 2. would be negatively geared, which doesn't make sense if your research doesn't show growth prospects. In some cases rent on purchase was lower than market and it has been possible to boost yield by raising rent (especially when an existing long-term tenant leaves).

These properties were bought the conventional way through agents. Someone who was a better negotiator than me, bought privately and/or spent more time looking would no doubt have got better yields than me.

Regards, Peter