Investing for Income/cash flow

This article is from Shane Oliver 26.10.17)
5 Great Charts on investing for income (or cash flow) for those interested

5 great charts on investing for income (or cash flow)

 

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.

 

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.