my gross yields have dropped

I'm not talking about a particularly poor performer at 8.5+ % gross on purchase then 20% growth. Many investors hold forever but I prefer to move the money elsewhere if the initial benefits aren't there anymore.

 

Could you look at drawing equity to buy shares. You can get some pretty good yields with franked dividends and diversify you're portfolio all without the large transaction costs of trading properties.

 

Got it, me too, I like my money to work for me.

When I started investing I never reviewed my properties because I thought they would all look after themselves and someone told me they will double in 7 years.... but they lied...... and they weren't even providing me with cash flow......

 

Makes sense.

My main question apart from moving it to somewhere better performing would be - after all the selling costs, would the improvements worth it

 

Depending on the property a 20% capital gain could be eaten up by taxes and costs. I'm all for chasing better performers but with property you're often chasing your tail.

 

Something is odd here
Although they don't always double in 7 years they can/do produce fanastic cash flow
I will provide an example in a new thread

 

Look it's a valid point. And that's why people sell shares or properties. The whole black box in this is taxes and transaction costs.

 

Agreed. It's in NZ though so at least I didn't have stamp. Also could possibly on sell without using an agent, so mainly just tax. Also negotiated discounts with conveyancer for frequent use.

 

Perhaps CIP ????and I even wonder how that is going in Australia today???
Don't buy CIP in Perth can not even rent them out due to oversupply..... and not resi at the moment.

Here is the current picture today, I would not want to be holding property with these returns, there are better ways

 

Depends on where you buy and what you buy...

 

where?

markets in Syd and Melb metro skyrocketed, yield have suffered due to this. Perth yields are continuing to fall due to oversupply

 

The problem in looking at the past trends is you don't believe it can change
All i know nothing goes up or down for ever

 

Yes.....your right.. and trends today with regards to resi no idea on CIP are not following past trends

 

Do you adjust the rent to a net rent by removing cost like rates insurance and maintenance?

 

No. Indeed yields could go up if property values fall more than rentals do. This is a real possibility in Sydney for example.