Investing for Income/cash flow

Discussion in 'Property Market Economics' started by MTR, 28th Jan, 2019.

Join Australia's most dynamic and respected property investment community
  1. MTR

    MTR Material Girl Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    16,020
    Location:
    My World
  2. BuyersAgent

    BuyersAgent Well-Known Member Business Member

    Joined:
    19th Jun, 2015
    Posts:
    851
    Location:
    Oz
    Thanks @MTR
    A family member of mine recently took some profits from selling a capital city property and reinvested in a suite of direct shares (specifically purchased for long term dividends not trading) for income. They were seeking to go from around 3% to around 5% income on the capital concerned and seem happy thus far. Plus the property had a pool(aka headache). They will never buy an investment property with a pool again :)

    The interesting point of course from the first graph is whilst "Australian Gross Housing Rental Yeild" comes in low, that this is an average, nobody buys an average. You buy an individual property. I recently had a client unit purchase come in at 7.09% gross around 6% net of strata (to be fair it will net down to between 4-5% after rates) at a cheap price point in coastal location and further up the price range have seen some sub $2m multi-income properties both resi and commercial around 6-8% recently. So the yeilds are out there if you go looking I guess.
     
    Vishal Bhatti and MTR like this.
  3. np999

    np999 Well-Known Member

    Joined:
    12th Sep, 2017
    Posts:
    59
    Location:
    sydney
    Agree. The guy sitting right next to me made a very similar purchase a few months ago, also in a coastal location. He said he's just after a steady stream of good income, as he's less than 10 years from retirement age.