Join Australia's most dynamic and respected property investment community

Is that really possible to get over 8 % return from ....where do you look for them ?

Discussion in 'Where to Buy' started by fairy, 30th Jun, 2015.

  1. fairy

    fairy Active Member

    Joined:
    24th Jun, 2015
    Posts:
    42
    Location:
    Canberra
    Is that really possible to get over 8 % return from IP ....where do you look for them ? Or it is just a myth ...
     
  2. chindonly

    chindonly Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    336
    Location:
    Brisbane
    Used to be some of the mining towns. No more.
    Dual income properties perhaps?

    Commercial property definitely, but different LVR.
     
  3. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    1,167
    Location:
    Adelaide, SA
    Adelaide Northern suburbs all day long. I've picked up quite a few in the 8-11% range, market has recovered quite a bit now so we're looking at 7-9%. The odd 1 in 100 sale still touches over 10% though, but you have to be fast.
     
    fairy likes this.
  4. D.T.

    D.T. Adelaide Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    5,589
    Location:
    Adelaide, SA
    I have a 9 and a couple of 8's among my mix :)
     
    fairy likes this.
  5. fairy

    fairy Active Member

    Joined:
    24th Jun, 2015
    Posts:
    42
    Location:
    Canberra
    What tools you guys use to look for them. Is that worth buying membership of realestateinvestar
     
  6. D.T.

    D.T. Adelaide Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    5,589
    Location:
    Adelaide, SA
    Just knowing what properties rent for in the area and then negotiating a price that works.
     
  7. monalisa

    monalisa Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    314
    Location:
    Sydney
    This was possible in Sydney only a couple of years ago.
     
  8. Ausprop

    Ausprop Member

    Joined:
    19th Jun, 2015
    Posts:
    23
    Location:
    Perth
    usually the cheaper areas such as Mandurah, but it comes with added boganism
     
    Darren A and York like this.
  9. Johnny Cashflow

    Johnny Cashflow Well-Known Member

    Joined:
    29th Jun, 2015
    Posts:
    740
    Location:
    SA
    I have a 12.3%

    And a 8.5% in Lizbef
     
  10. Logan

    Logan Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    146
    Location:
    Sydney
    Corey which suburbs are you referring to ? I might need to take a trip
     
  11. MTR

    MTR Well-Known Member Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    7,430
    Location:
    Perth, Melbourne, USA
    Really, why is Adelaide not popular with investors?.

    MTR:)
     
  12. MTR

    MTR Well-Known Member Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    7,430
    Location:
    Perth, Melbourne, USA
    Another option mentioned properties which dual income, but with markets that have experienced substantial growth over last 2-3 years probably a tough call now to achieve high yields.

    Source properties where you can add value, cut up block build at rear, or add a g/flat, generate additional income.

    Rent by room, ie student accommodation

    Shares specific to property commercial etc, these generally provide higher yield

    Look outside Australia

    All of these have pros and cons


    MTR:)
     
  13. Corey Batt

    Corey Batt Finance Strategist Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    1,167
    Location:
    Adelaide, SA
    Considering the Elizabeth SA Somersoft thread alone has 127,600 views and circa 1,700 posts (making it one of the largest thread ever on SS) - I'd say it's immensely popular.

    After Brisbane, Adelaide is the second highest city gaining investor interest with our interstate clients - in percentage terms I would take a stab at circa 30%. 18 months ago this was only circa 10% - with the lionshare being Sydney of course.

    The same old jokes always get made about Adelaide, meanwhile there's been quite a few investors who have picked up double digit yields and 20%+ CG over two years.

    Watch this space. :)
     
    MTR likes this.
  14. MTR

    MTR Well-Known Member Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    7,430
    Location:
    Perth, Melbourne, USA

    I certainly will
     
  15. DanW

    DanW Well-Known Member

    Joined:
    26th Jun, 2015
    Posts:
    400
    Location:
    Sydney
    Ex-government duplex sale in Adelaide's southern suburbs (Huntfield Heights)
    Rents $250 per side ($26k pa)
    Buying for $325k.
    8% yield

    This was September.. so prices may have moved a bit, and these duplexes are few.

    Also try out the RE yield map to narrow down your suburbs. Use it in any capital city you are looking for.
    An example: http://www.realestate.com.au/invest/house-in-christie+downs,+sa+5164?shd=rental_yield

    You can also look at http://www.yourinvestmentpropertymag.com.au/top-suburbs/ to sort yields. But be wary of stats, alot of the top yields are due to holiday rentals that have ALOT of outgoing costs and time consuming PITA work involved, e.g. Huskisson.

    Don't let these maps lead you into dodgy little towns outside capital cities either.. if property prices have crashed in some towns that also makes it report a high yield! Tools are a starting point to searching only, and you still have to do ALOT of other research.
     
    2FAST4U likes this.
  16. drg86

    drg86 Well-Known Member

    Joined:
    25th Jun, 2015
    Posts:
    276
    Location:
    Newcastle
    Student housing or dual income.

    If you can't find them build them...
     
  17. skater

    skater Capitalist Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    1,412
    Location:
    Sydney
    There's plenty of Regional's with very high yields, not just Adelaide.
     
  18. pinkboy

    pinkboy Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    913
    Location:
    Mackay, Qld
    It's cute you calling Adelaide 'regional'!

    :cool:

    pinkboy
     
  19. keithj

    keithj Moderator Staff Member

    Joined:
    14th Jun, 2015
    Posts:
    177
    Location:
    Blue Mtns
    Buy anything today & wait a few years - it'll return 8% on purchase price eventually...... mine are anyway.
     
  20. skater

    skater Capitalist Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    1,412
    Location:
    Sydney
    LOL! Compared to Sydney it is..........

    For the record, I meant that you can find cf+ in some Adelaide suburbs AND in many regional areas.
     
    monalisa and Set81 like this.