Join Australia's most dynamic and respected property investment community

NSW safe double digit yield properties

Discussion in 'Where to Buy' started by Elvis1, 8th Sep, 2016.

Tags:
  1. Elvis1

    Elvis1 Active Member

    Joined:
    7th Sep, 2016
    Posts:
    44
    Location:
    Sydney
    Just arrived new to site .
    Hoping to get some advice on regions with double digit yielding properties as I've hit a brick wall with servicability and now have to increase my borrowing capacity, my broker has advised me that my next two properties should be double digit to get my borrowing capacity right to move forward, as already have two properties in Sydney doing well and one I've put a granny flat and renovated, there's not much more I can do .
    APRA has made it difficult .
    Does anybody have any recommendations ??
     
  2. MTR

    MTR Well-Known Member Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    7,389
    Location:
    Perth, Melbourne, USA

    Do some research on PC, the good the bad and the ugly.

    A few posts from some chasing cash cows and ending up with duds, last thing you want.

    Stay away from mining towns of course

    Don't buy in Regional areas for cash flow where you have one horse, dog and perhaps a maccas:p probably more of a headache than it is worth.

    Read posts by @Taku Ekanayake, he is probably buying under market value and doing a reno/adding value?? May suit you??

    Read posts by @sash he is doing land and house packages, the yields may be right for you?? Just some suggestions that may suit
     
    Taku Ekanayake, josh123 and Elvis1 like this.
  3. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

    Joined:
    19th Jun, 2015
    Posts:
    1,230
    Location:
    NSW
    3 things: high yield, high growth, low risk - pick any 2.
    ie leaves you with:
    1. High yield, high growth, high risk - ala mining towns
    2. Low yield, high growth, low risk - neg geared in large cities
    3. High yield, low growth, low risk - back of Woop Woop - why bother?
    ....and so on.
     
    Last edited: 8th Sep, 2016
  4. Elvis1

    Elvis1 Active Member

    Joined:
    7th Sep, 2016
    Posts:
    44
    Location:
    Sydney
    I understand your points , my borrowing capacity at the moment is $125k so I have to make more income either wages or rent and I already work 13 hours a day so it's rent .
    The equity I should be able to release would be around 60k and that's leaving my two other loans at 90% as I have dipped into the first to buy the second and then dipped into the second to build the granny flat on the second so this is where I am at the moment .
    Any suggestions?? Or should I buy high yield ?
     
  5. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

    Joined:
    19th Jun, 2015
    Posts:
    1,230
    Location:
    NSW
    I understand your question, the answer to which really comes down to what you are trying to achieve. If you are just collecting houses, buy high yield. If you want to become wealthy from the capital growth houses in good areas can provide, then buy high growth.
     
  6. Tony Fleming

    Tony Fleming Well-Known Member Business Member

    Joined:
    18th Jun, 2015
    Posts:
    536
    Location:
    Sydney
    Why just NSW? Look at regionals like Albury if you want decent yields and medium growth at that price range.
     
    Taku Ekanayake and Elvis1 like this.
  7. strongy1986

    strongy1986 Well-Known Member

    Joined:
    24th Jun, 2015
    Posts:
    201
    Location:
    VIC
    Albury is in NSW
     
  8. +men

    +men Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    82
    Location:
    Sydney
    What makes Albury attractive?
     
  9. Pixie

    Pixie Active Member

    Joined:
    27th Jun, 2015
    Posts:
    28
    Location:
    Vic & NSW
    Large regional town? And its a town between Melbourne ans Sydney.... ie like silk road ? My guess anyway.
     
  10. Tony Fleming

    Tony Fleming Well-Known Member Business Member

    Joined:
    18th Jun, 2015
    Posts:
    536
    Location:
    Sydney
    Sorry should have worded it better I meant why is the op just looking at NSW and than I began talking about my love of Albury.
     
  11. Tony Fleming

    Tony Fleming Well-Known Member Business Member

    Joined:
    18th Jun, 2015
    Posts:
    536
    Location:
    Sydney
    I've got a few down that way. The yields are great, tenants are great and with a large number of infrastructure projects on the horizon medium to long term growth looks good.
     
  12. Elvis1

    Elvis1 Active Member

    Joined:
    7th Sep, 2016
    Posts:
    44
    Location:
    Sydney
    I'm not just looking in NSW but Albury sounds ok , any others? I understand there should be more than one industry for the town to rely on .
     
  13. Elvis1

    Elvis1 Active Member

    Joined:
    7th Sep, 2016
    Posts:
    44
    Location:
    Sydney
    D
    dark knight , how long have you had you properties in Albury ? How's the tenancy ? What yields and how much growth?
     
  14. Mick Butterfield

    Mick Butterfield Well-Known Member

    Joined:
    15th Jan, 2016
    Posts:
    408
    Location:
    Bermagui NSW
    @Elvis1 does it have to be in Oz?
     
    MTR likes this.
  15. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,558
    Location:
    Sydney or NSW or Australia
    The skirt and the flowers in her hair?

    (Her healthy bank account helps too) ;)
     
    Dean Collins likes this.
  16. Elvis1

    Elvis1 Active Member

    Joined:
    7th Sep, 2016
    Posts:
    44
    Location:
    Sydney
    Don't know much about international property?
     
  17. Mick Butterfield

    Mick Butterfield Well-Known Member

    Joined:
    15th Jan, 2016
    Posts:
    408
    Location:
    Bermagui NSW
    @Elvis1 Check out the Atlanta thread on here and the SS forum. That will be about all you need to know. 10%+ returns are quite easy there still. Cheap buy in as well also helps. We have a couple over there and looking to get a few more in the coming months.
     
    Elvis1 likes this.
  18. Tony Fleming

    Tony Fleming Well-Known Member Business Member

    Joined:
    18th Jun, 2015
    Posts:
    536
    Location:
    Sydney
    Yes definitely need more than one industry. Might be a bit late for other regionals as they have already moved.
     
  19. Tony Fleming

    Tony Fleming Well-Known Member Business Member

    Joined:
    18th Jun, 2015
    Posts:
    536
    Location:
    Sydney
    I've had a few for a few years now. Tenancy in regional towns is normally the biggest concern. I've never had a vacancy longer than 3 weeks. I always make sure my properties are in good condition, allow pets and have dishwashers etc. If other comparable properties on the market don't have it I want it. Yields are quite high and growth has been improving. Had a unit revalued at 134k when I bought it 2 and a bit years ago for 83k. I'm happy considering it was cash flow positive from day :)
     
  20. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

    Joined:
    18th Jun, 2015
    Posts:
    2,099
    Location:
    Melbourne, Nationwide
    The title says, "Safe", and "Double digit yield".

    These are often mutually exclusive.
     
    Eric Wu and Tony Fleming like this.