yeild data

[not so lucky]

Hi
I am fairly new to this and this is my 1st post.
Does anyone have advice on sources of yeild data for IPs. I have tried using newspapers to calculate data from current rents and prices but it is probably a pretty rough method. Is there any other good sources apart from buying the market stats from REI or similar agencies, which can be a bit expensive.
Ta

 

[Aceyducey]

Hi Not So Lucky & welcome to the forum!

There are sources out there, but which apply depends on your area.

Allhomes (www.allhomes.com.au) is fantastic for the ACT. FOr other states & territories you may find it harder to discover comprehensive information online for no charge....however you can refer to real estate sites, newspapers (as you mentioned) and also build up good relationships with real estate agents or property valuers who can make the information available to you.

You can also look for property investment publications. The REQ does a great one for Queensland & Australian Property Investor generally has a lot of data in the mag - though the areas it covers each month are different.

Cheers,

Aceyducey

 

[not so lucky]

Thanks for the advice. I will have to keep looking and build up that knowledge.

 

[Tibor]

Hi and welcome,

For SEQ you can use www.rta.qld.gov.au
It has lots of useful info, including residential yields by suburb and property type and its free. The yields are downloadable and get updated in every quarter.

 

[not so lucky]

Thanks Tibor
It looks pretty comprehensive.

 

[Peter Parker]

Once you've zeroed in on an area, you could try asking agents about rents for tenanted properties you're thinking of buying.

Sometimes the bank may require evidence of rent - it's no hassle to get the PM to put it in writing.

Sometimes the actual rent charged might be less than market value. This may either be because the PM hasn't reviewed the rent, the landlord is friends with the tenant or the tenant did some work on the property in exchange for lower rent.

It should be possible to identify significant departures if you compare the actual rent with those of the agent's rental list for similar properties.

To get back to your initial question, I believe there is a Residex Positive Cashflow list you can get. But the stats can be based on very small numbers so might not necessarily be ideal.

High yield places tend to be either:

1. Mining towns with high average incomes, large numbers of renters, average prices but high rents.

2. Declining country towns where rents are cheap but properties are even cheaper!

3. Areas where rental demand is outstripping supply, vacancies are zero and there is a housing shortage pushing rents up.

Peter

 

[not so lucky]

Thanks for all the advice.
Now once I have collected the data on rent and growth and everything else I can find. What level of gross yeild (ie annual rent / purchase price) should be the threshold to aim for. Some people say that you should be aiming for 5 - 6%, but the current rentals are around 3 - 4 % in most areas that I have looked at. What determines the yeild threshold? What yeild should I aim for?

 

[Aceyducey]

Thanks for all the advice.
Now once I have collected the data on rent and growth and everything else I can find. What level of gross yeild (ie annual rent / purchase price) should be the threshold to aim for. Some people say that you should be aiming for 5 - 6%, but the current rentals are around 3 - 4 % in most areas that I have looked at. What determines the yeild threshold? What yeild should I aim for?

Not so lucky.

Be aware that you are not buying into a boom market. The boom market is over for the time being & you cannot expect the same level of CG in most areas over the next few years.

The yield you should be looking for depends a great deal on your goals & timeframes.

What are your long-term financial goals? How does property fit into the mix? What do you want to achieve through the purchases you are making right now?

If you are looking at using tax offsets via negative gearing for a 10 year plus period with the aim of generating a large CG profit, you may get better returns by aiming for low yield properties in long-term high CG areas. You're not likely to see much growth in the first five years though.

If you want a long-term property for positive cashflow, then you need to look for places with long-term higher rental yields, but less CG potential.

Horses for courses.

Cheers,

Aceyducey