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Strategies on increasing yield

Discussion in 'General Property Chat' started by swanqueen, 2nd Jul, 2015.

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  1. swanqueen

    swanqueen Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    53
    Location:
    Melbourne
    What are your strategies for increasing yield on your properties? Please share what you did, how much the improvement costs, and what the rent increase was.

    I'll start off - I'm building a GF in one of my NSW properties. 120k build costs, estimated rent about 300 p/w.

    I have another property that is fairly new (about 5 years old) which was purchased as a house and land package. Not much to do there except maybe putting in an A/C (about 2000 bucks), this could potentially increase the rent by another 15-20 p/w.
     
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  2. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
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    Location:
    Sydney
    I buy old houses, knock them down and build multiple townhouses, that helps increase the yield nicely.
     
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  3. jpcashflow

    jpcashflow Well-Known Member Business Member

    Joined:
    21st Jun, 2015
    Posts:
    371
    Location:
    Melbourne
    Hello,

    The properties I usually buy will give me the access to build at the back. This provides an attractive yield!!!

    I used to buy properties, renovate and then sell but I feel like the market has changed!!!

    Also there are a few little things you can do to increase the yield:
    1) Review the property insurance's: When was the last time you reviewed your landlord insurance?
    2) Review your current loans: Could you be with a better lender that has a better rate and a lender that suits your needs more?
    3) Just ensure if you are spending a dollar that you make a 1.20 in return eg for renovations etc.
    4) Have you reviewed your property management fees?
     
  4. HUGH72

    HUGH72 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,124
    Location:
    FNQ
    One of the easiest ways to increase yield when the opportunity arises is to convert two large bedrooms or another room into a 3rd bedroom.
    Generally most people don't like 2 bedroom houses unless they fit their circumstances, its easy to over look these and they tend to sell at a discount.
    If an extra room can be created which isn't too small its most likely an instant yield increase due to higher rent achievable
     
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  5. Ripehouse.com.au

    Ripehouse.com.au Active Member

    Joined:
    2nd Jul, 2015
    Posts:
    44
    Location:
    Hobart and Sydney
    Another perspective outside of block splitting and renovation; investing in areas that currently have the strongest tenancy demand in the suburb in question (high rents, high levels of current tenancies but low rental stock), which will enable you to increase rents faster than the suburb overall - thereby increasing yields via aggressive rental increases based on that high demand.
     
    Tekoz likes this.