Browsing the latest listings on the realestate websites, as I tend to do on an afternoon, I found a property at Hill End in Brisbane, one of those POA, no price listed, so after emailing the agent to ask for price and current rental prospects I was flabbergasted to learn it would return a measly 1.4% gross yield!
Dornoch Terrace, Hill End
"offers above $1million"
Queenslander split into 2 units
renting at $130 and $150 per week.
http://www.realestate.com.au/objects/props/7915/101137915al1067521980.jpg
My thinking is:
- the vendors are asking too much
- if someone buys this they have more money than they know what to do with
Admittedly I didn't ask the agent if there is any kind of subdivision or development potential.
With yields like this, you need a bucket of money to buy/hold and/or develop the property, and being priced above $1million it doesn't seem like there would be much potential CG upside left.
Can anyone imagine under what circumstance it would make sense to buy such a low yielding property?
Dornoch Terrace, Hill End
"offers above $1million"
Queenslander split into 2 units
renting at $130 and $150 per week.
http://www.realestate.com.au/objects/props/7915/101137915al1067521980.jpg
My thinking is:
- the vendors are asking too much
- if someone buys this they have more money than they know what to do with
Admittedly I didn't ask the agent if there is any kind of subdivision or development potential.
With yields like this, you need a bucket of money to buy/hold and/or develop the property, and being priced above $1million it doesn't seem like there would be much potential CG upside left.
Can anyone imagine under what circumstance it would make sense to buy such a low yielding property?