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

@fairy yes it is possible .. just have to look at out side of box options! Manufacturer growth/rent yeild via development, renovation, buy a block of units, some properties in Brisbane, Adelaide, etc..

 

Just make sure it's gonna get you to your goals. Many ppl chase yield only to realise later on that for their personal situation they could have chosen path B or C instead of A and gotten to their goals faster, or indeed actually get to their goals.

 

How do you know so much about 'many ppl'? I'm surprised you're not using your usual '95%' or '99%' -ers.
We 'get it' that regionals aren't part of your strategy and mindset. But you probably don't know as much as you think you do (98.5% certainty on that). Live and let live.

 

Hi Wattleido,

All I was saying was to make sure its inline with that person's goals. Am I not allowed to say that? I was not anti yield or regional mate. All I said was make sure its inline with their goals.

The statistics is the evidence with regards to investors achieving or not achieving their property investment goals mate. That's obvious and quite clear.

I have many people I engage with (not related to the forum) who tell me they wish they thought a little clearer about their goals 5 years ago when deciding what to invest in and not just going with the flow.

Cheers

 

I get the impression that some chase yield at the cost of growth. Definitely need the growth in order to get equity in order to get more properties. CG is still the name of the game, I just prefer to be in front every month.

 

"Many people" also look for a mix. High yielders can have a valid place in a portfolio. We all have different goals, and different tolerance to risk. Some even have low incomes and need a high yield in order to afford to invest in the first place. That is the beauty of property. It's adaptable to each & every person. All you got to do is find out what works for you, and then keep working it.

 

Maybe your friends are too inexperienced to realise that if they chill-out they'll probably do just fine from their investments AND be able to sleep at night.
We all wish we'd bought another property in Sydney right now - we all have 20/20 vision in hindsight. That'll change. It's not about being better than anyone else. Maybe your friends and other people don't have mummy and daddy or their partner's olds' money to play with straight up and they've got to get themselves some serviceability. Ever thought of that?

 

Yeah, that's where your research and negotiation skills come in. If you're going to buy in a quieter area, make sure you don't buy at the top or of course you'll be waiting a while for CG.

 

HI

Hi Skater,

I agree 100%. If someone needs to buy a higher yield property due to their risk profile, or balance out NG or serviceability etc then it absolutely makes sense and I agree completely. If the OP was debt free, 140k income with medium risk tolerance and wanting faster CG then perhaps there could be other options. That's why all I was saying is make sure buying a higher yield IP in Adelaide is in line with the OP's goals. IMO its advice that makes complete sense.

 

Mate please lets be more mature than that. Surely that's reasonable.

 

I don't!

 

I'm not sure what's immature about that. As I said, Live and Let Live.

 

The other point to note is that you don't need 8% yield straight away to be positive cash flow at the present low interest rates.

 

In my personal position, higher yielding properties (7.5%+) yields have shaped my investment strategy. These were cheaper properties, I feel as though i learnt so much through each purchase. I quickly learnt however that creating equity is the most important factor for someone wanting to build a property portfolio. I don't regret purchasing these CF+investments however i feel as though my money could be better spent elsewhere for a better return on the overall investment.Having some CF+ properties is now going to allow me to purchase neutral to negative IPs comfortably creating a healthy balance. . My strategy is buy and hold so lets hope all my investments will be cash flow positive within a few years from purchase anyway i don't see a right or wrong way of doing it either negative or positive geared as i have seen investors achieve outstanding results either way.

 

Does that cost extra?

 

How are we calculating though, against purchase price or current value?

I have a 10.4% against purchased value, close to 4.5% against current..

 

When I was CF+ only focused, realestateinvestar was my tool of choice as it eliminates very quickly and you can set all the specific parameters you require like "8%", it has a couple of nuances, otherwise it is fantastic for time poor people who have no idea where to look first and are interested in maximising their effective hourly rate when researching an investment.

A lot of the properties may not be suitable to put a loved one in but that's the rub, since this strategy is not my main focus anymore (primarily CF+ only properties) I no longer use this tool.

 

When people tell you their "rental yeild" they will more than likely mean on purchase price.

That's what I do any way!

 

what about the concern about the Adelaide economy and the stigma that young people are looking to leave Adelaide to go to one of the other capital cities

 

Their unemployment/population/brain drain woes are definitely a worry. Regardless of what's happening on the ground I would be hesitant to invest until the fundamentals looked better. They need a whopping great big federal project to land in their lap to get things humming along.