Perth or Brisbane

Discussion in 'Where to Buy' started by Nuncasuficiente, 16th Oct, 2018.

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  1. Perthguy

    Perthguy Well-Known Member

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    I don't know how to calculate yield. Is it rent vs purchase price? Or rent vs current loan? Or rent vs current value? I don't mind disclosing the yield if you can help me calculate it :)

    The loan is P&I and my plan is to hold for 10+ years while the loan gets reduced. After that, reasess and either demo and build 2 or retain and build behind. I will be guided by the numbers but I can't see how demo would be more profitable.

    The process is: survey strata, engage a builder, buikding license, build. If there is common property then a DA will also be required
     
    Perthguy, 17th Oct, 2018
    #21
  2. Nuncasuficiente

    Nuncasuficiente Well-Known Member

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    Ok thanks, yield is just rent x 52 ➗ by purchase price x 100
     
    Nuncasuficiente, 17th Oct, 2018
    #22
  3. Ketsle

    Ketsle Well-Known Member

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    "Be greedy when others are fearful..."? ;)
     
    Ketsle, 17th Oct, 2018
    #23
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  4. Ketsle

    Ketsle Well-Known Member

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    That would be gross yield that doesn't factor in any holding costs (maintenance/rates/PM fees etc)

    Also aren't you dividing by its current market value not its purchase price? (Of course if you are looking to buy or have just bought then use purchase price but I wouldnt do this for something you bought >1yr ago)
     
    Ketsle, 17th Oct, 2018
    #24
  5. Nuncasuficiente

    Nuncasuficiente Well-Known Member

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    Well yeah it’s a gross figure just commonly used to get an idea of rental return. Of course there are other costs.
    You could use value rather than purchase price but that would give you a pretty useless figure imo as you are not paying off current value but purchase price.
     
    Nuncasuficiente, 17th Oct, 2018
    #25
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  6. Perthguy

    Perthguy Well-Known Member

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    4.5% after renovating.

    Probably around 3.21% before renovating
     
    Last edited: 17th Oct, 2018
    Perthguy, 17th Oct, 2018
    #26
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  7. Nuncasuficiente

    Nuncasuficiente Well-Known Member

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    Ok cool I think I would be happy with that while land banking so close to the city...
     
    Nuncasuficiente, 17th Oct, 2018
    #27
  8. Sackie

    Sackie Well-Known Member

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    Don't be greedy when they are fearful....











    Be BLOODY greedy! :oops::cool:
     
    Sackie, 17th Oct, 2018
    #28
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  9. eletronic_exp0430

    eletronic_exp0430 Well-Known Member

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    I'm always Greedy - I got expensive/bad habits. :)
     
    eletronic_exp0430, 17th Oct, 2018
    #29
  10. Sackie

    Sackie Well-Known Member

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    Well something has gotta pay for your army of Rolexes.
     
    Sackie, 17th Oct, 2018
    #30
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  11. Empire

    Empire Well-Known Member

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    Perth or Brisbane -
    Perth has been crashing for years so imo there is better value to be had there.
     
    Empire, 17th Oct, 2018
    #31
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  12. Angel

    Angel Well-Known Member

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    Why not both?
     
    Angel, 18th Oct, 2018
    #32
  13. Sackie

    Sackie Well-Known Member

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    Both as in?? sorry not following.
     
    Sackie, 18th Oct, 2018
    #33
  14. Angel

    Angel Well-Known Member

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    One in Perth, one in Brisbane
     
    Angel, 18th Oct, 2018
    #34
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  15. Sackie

    Sackie Well-Known Member

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    ohh ok. I thought you were refering to the 'greedy" part.

    Well one in each place could be fine ..just comes back to goals/strategies .
     
    Sackie, 18th Oct, 2018
    #35
  16. Nuncasuficiente

    Nuncasuficiente Well-Known Member

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    Maybe if I get one in per first and leverage it post subdivision I could do that... Need my 20% deposit here if I was to do that as the rents in Perth are so low.
     
    Nuncasuficiente, 18th Oct, 2018
    #36
  17. JohnPropChat

    JohnPropChat Well-Known Member

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    Good suburb for PPOR is not necessarily a good suburb for IP.
     
    JohnPropChat, 23rd Jan, 2019
    #37
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