Yields in Sydney
- Thread starter scientist
- Start date
Try 2 bed units in punchbowl/lakemba for $210-$220k rent $320pw.
13kms from CBD
Oh sorry I forgot to mention house with land only
original post edited.
Why do house with land in some suburbs have yields around 3.5% to almost 4%? I'm still new to this game but it's been drilled into me that sydney properties' rental yields are around 4-5%
Here's a generalisation for you that might help with your understanding:
You can have capital growth (CG) but not yield at the same time. If you take a waterfront suburb for instance, in a $400K property that is no-where near the water (but still in the same suburb) you might get $400pw rent, which is approx. 5% yield. But if you put the same sized property on the waterfront in that suburb, it might be worth, say $800K, but you don't get $800pw rent for it. You might be lucky to get $450pw rent, which is only a 2.9% yield.
So again, big generalisation, and there are many exceptions to the rule, but if you see poor rental yields, typically you are getting superior CG to make up for it.
What's the low end of what's considered reasonable for yields in sydney, for house with land? I'm not looking at waterfront properties, just hurstville area / inner west
I can't speak of Hurstville from experience but in the Inner West we get about 4.5% rental yields on the properties we've been buying there.
RPdata claims a latest 'indicative' yield for houses of 4.3% and units of 5.1% for Sydney. Make of that what you will!
These are AVERAGES - and that is why you get a number like 5% when you average out the returns from Mosman etc at 2-3% with the returns in the West of 7+%.
The "average" is a pretty meaningless number as no-one buys the 'average' house. They buy a particular house in Greystanes, or St Marys or Bondi or wherever.
Yes, to know which suburbs got that yield value, you can get that from Investment property magazines
it is simple and safe to follow.
Obviously. Just trying to give him some kind of base to start from as per his question.
Sydney is a bloody big place. Might as well be quoting these yields for the whole of NSW or Australia.
Simple 3 step process for best yields:
1) Go through the data at the back of the investment magazines and find the suburbs with high yield.
2) Go through the listings for those high-yield suburbs on the real estate web of your choice site and find some houses that have a good net yield.
3) Go through the houses on open day.
Remember that the gross yield data in the magazines does NOT consider costs such as vacancy, council rates, water, or strata fees. The strata fees in particular need to be taken into account for units and townhouses because they can be substantial expenses, and will significantly reduce the net yield.
Where are they?
Hiya
8% yields in Sydney (West)
http://www.realestate.com.au/property-house-nsw-penrith-107503794
Hiya
8% yields in Sydney (West)
http://www.realestate.com.au/property-house-nsw-penrith-107503794
Thanks man for the suggestion and advice.
Go West ???
Somehow not so long time ago I read in the news that in Sydney West area is affected by the mortgage stress by lag 3 months behind the payment ?
would that means some of the house in that area defaulting ?
