46pc of the net rent is pure profit

P70 courier mail
47 castlemaine st milton brisbane
Sold on a net yield of 7.9pc
If funded at 4.2pc 46pc of the rent is profit
I am posting this as i have so many people say you can't achieve cash flow with property
Sure the tax bill is high when the cash pours in but you may get knighted by the government for the tax you pay

 

Cash flow is like a dirty word on here (for a lot anyway). People think you're weird if you're not going on about growth all the time.

 

At 1.85m purchase price based on 147k rent per annum per the ad, great deal so long as you have the 700k cash to buy it in the first place

 

Sounds very doable for nearly anybody in Sydney

 

Its all about the yields
In the last three years my purchases have been as low as $25k and as high as $16m but the important thing is the net yield

 

You hit the nail on the head ...good cashflow first growth will follow
Nothing wrong with cashflow

 

Can you get 4.2% on this size commercial?
What about land tax? Do you include these in outgoings now?

 

Probably the first thread I've read that isn't just about growth. Good to see. @Beano , if possible would you share some more deals that you have done in the past on commercial and residential showing returns.

 

4.2% is very doable on >$1m commercial. Outgoings will be paid by the tenant (which is good as long as you have a tenant!). Generally land tax is paid by the owner (at least in VIC), but that could already be factored into the net yield.

 

@DaveM - $700k - that's over 35% in the deal. Numbers will look very rosy.

 

Did you buy a $16m property based on cashflow, growth, or both? Can you elaborate on a broad timeline?

 

how was that net yield calculated?

the sydney boom created many .... type investors

 

Already under offer... Been busy @Beano

Can you find these sort of numbers at $1m (ie $300k equity)?

 

Where you could buy just about anything anywhere and make money on it, then act as though you have some secret method for success?

 

I want both. cashflow is not a dirty word, but Not everything is equal, and there is more than one way to skin a cat.

 

...but many investors did not jump into booming markets Syd/Melb and Perth.....during 2013........and yes, you don't need to be a genius, but you do need to jump in to make money.

 

I'd not be overly upset with poor cg if I was getting 7%+ nett with 4% fixed increases (provided that the market was reflecting those increases too - nothing worse than a dose of reality when market is way below the rent the outgoing tenant has been paying for years).

 

but do resi owners get 7%+ returns today? where/what?

 

No

 

right, I thought you were talking resi my mistake