High Rental Yield Property #3, Debt Consolidation / Cashflow

Good luck mate! Feel free to reach out if you have any questions

 

What about Logan, Brisbane?

I purchased a house for 323k earlier this year. Have just completed a 20k makeover and the weekly rental will be around $550... I'm not keeping the house but I have lots of similar in my portfolio. As mentioned before in other posts if you know the Logan market well there are some good opportunities for great cashflow AND growth!

Yes Logan has moved but I'm still seeing some good buying.

How long have you had the unit in Robina for and whats the net yield on it after strata fees?

 

Heard some good and bad things about Logan, yeh not sure.

My robina unit orginally was a PPOR when i lived on the Gold Coast and its done reasonable well. From 380,000 to 465,000 with alot of the CG coming from the last 2 years (As alot of properties have through Covid) Strata fees are pretty high unfortunately, big complex, landscape, lifts, pools, ect.

Rents for 500 p/w
Gross Income: 26,000 pa
Costs to hold: 15,860 pa (strata 3751)
Mortgage: 10,680 pa
Net Income: 5220 pa
Net Yield: 1.12%

Hope that's right?

 

I wouldn't include the full cost of your mortgage repayments in your yield calculation - just the interest component.
The principal component is building your equity (but decreasing your cashflow) - kind of like an enforced savings plan.