Are there deals like this in Perth these days?

Discussion in 'What to buy' started by baussie, 22nd Apr, 2018.

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  1. baussie

    baussie Member

    Joined:
    2nd Jun, 2017
    Posts:
    11
    Location:
    WA
    I would like to know if there are deals in Perth/ WA that have circa 25% ROI per annum from rental income as well as good prospects of capital growth? It seems like most places I've come across in the residential real estate market have good capital growth (inner western suburbs) not so much the rental income. Don't know about commercial real estate (caravan parks, warehouse, etc.) suggested by the author of a book I am currently reading by Steve McKnight saying that these type of opportunities were available in Melbourne (and surrounding cities) about 15 years ago.
     
  2. JohnPropChat

    JohnPropChat Well-Known Member

    Joined:
    10th Sep, 2015
    Posts:
    2,293
    Location:
    Middle Earth
    How are you calculating your ROI? Will there be a mortgage or is it is cash deal?
    5% yield with 20% (deposit, stamp duty, closing costs) is 25% Gross-return on investment but a lot of that goes to paying the mortgage.