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

I am currently seeing lots of interest (via Ripehouse users whom are targeting 8%+ yield) in Davoren park (SA as discussed), Cairns (which is starting to look ok for capital growth fundamentals etc) and Logan City LGA in southern Brisbane.

Kingston in Logan, as an example, has 6.6% average yield across the suburb, but is home to some streets that have over 11% yields as an average (but also 45% public housing). Kingston is also home, however, to street areas that have over 8% average yields but less than 2% public housing.

Checkout this webcast recording I recently filmed (at about the 17min mark) to demonstrate how to dissect a suburb (on a street by street basis) to safely find streets that achieve you target yield figure (even though the suburb overall does not).

 

Despite the state of the local economy, over the past 12 mths Adelaide real estate has out performed Brisbane, Perth, Hobart, Darwin and Canberra
http://www.corelogic.com.au/media-r...ing-values-9-8-higher-over-the-financial-year

Just saying...

 

That's great if you were actively buying in Adelaide 12 months ago however I'm not arguing whether or not there is good movement in prices and activity. I'm arguing that the macroeconomic factors one would usually look for when deciding where to invest are not really there for Adelaide (for me at least). I'd be looking for more positive employment and population trends before looking closer.

 

You could achieve 20% yields 2-3 years ago in USA, but now its probably around 8% with the Au$ falling and US property rising? I am not suggesting you buy in US now, but it possibly would fit that 8% criteria.

MTR

 

Well those factors maybe aren't there currently yet prices can still rise. By the time the stars have aligned and you think the economic profile is healthier you will be competing with others from all over the country.
Vacancy rates are low, yields are strong, prices are edging higher, looks like a reasonable time to buy presently. No one can predict the future but there's easier pickings when there is a little pessimism around IMO.
93% of the population is still employed, have a look back at historical unemployment rates, they were higher in the early 90s and 80s and for much of the 70s.

 

Agreed. At the cost of greater speculative risk IMO.

 

I intend to hold for 20+ years as I have with earlier purchases if not forever and have appropriate risk mitigation in place, I don't think its even speculative at all but each to own.
Once all the buy signals line up some good opportunities will have passed.

 

Easy 25-30% return within 12mos, just develop the property.

 

Have you considered reading the topic of the thread?

 

Ripehouse, really interested to see where you obtained those figures around breakdown of public houses?

Looking in Kingston myself and would like to avoid streets that are predominantly housing commissions.

Cheers

 

I saw a 9% come through for Moe in Vic. A unit block of 3 or 4 on one title. That was gross, so not sure where it lands after costs. Common for that area. I haven't looked at Moe for a very long time, so not sure if there is anything going on that way that would contribute towards any capital growth these days. there certainly wasn't when I last looked.

 

Gainsborough in the uk lol

http://www.rightmove.co.uk/property-for-sale/property-35188851.html#_full-description

 

Sameer -just on the public housing in Kingston. This is a screenshot that demonstrates exactly where the public housing is located in Kingston, QLD. The darker the red overlay for each street area the higher the public housing:

 

Yes, it is possible with Dual property or build a granny flat at the back of your house.

 

@monalisa : Yes it is still possible now IF the property has been bought with higher LVR or previously cheap price before 2013.

 

Do you mean lower LVR? That doesn't change the yield...

 

@ej89 : Yes that's what I mean.
Ah I see, so even if the loan is reduced by the higher deposit, I was under the impression that the monthly repayments would be cheaper thus increasing the rental rate can boost the yield.

Thanks for the correction mate.

 

Yield is not calculated on how much money you put in the property.. you can have a 3% yield that's positive cashflow if you pay the whole cost of the house but that wouldn't be the smartest thing haha

 

A good rule of thumb for investors is to calculate your yield off 105% of purchase price, not against the debt tied to the property. The extra 5% is a rough cost guide to cover the stamp duty/assoc charges of the purchase.