TAS Where to buy with 6% + yield

I am going another IP. We have a couple in QLD.

For my strategy (i have low taxable income), looking for IP with 6%+ cash flow.
prefer detached housing.
Looking around 300K or less (i prefer to buy multiple cheaper places to diversify).
We prefer to stick close to major CBDs instead of regional.

I have been looking at Northern Adelaide suburbs (Salisbury Area) and North Hobart and Launceston. Seems like not many places left in Brissy. I have been looking at decreasing stock on market as one option of movement of a suburb. And vacancy rates. Also considered the economy of Adelaide looks a little worse than Tasmania (although Tassy smaller)

I recognise limited options when wanting such a high yield.

where would you go and why?

 

Look across the ditch
NET yields over 6pc
NO CG tax
NO Stamp Duty
NO Land tax
Lower tax on higher income
My mates have achieved 10pc plus Net yields
I have achieved 6.4pc net yields with no depreciation costs (I dislike depreciation of my assets)

 

Hey Beano,
Thanks for that.
Where abouts where you looking/investing there?
And how long have you been doing in NZ, and have you seen much capital gains?
Are there the same tools for research as in oz?

 

Hi Seal,

Have you considered looking around Ipswich? you should be able to pick up something close to those numbers. Good prospects for the city also and proximity to Brisbane.

Cheers,
Mick.

 

Quite a long time as I am from NZ
Have properties in Auckland Wellington Napier
Pretty well the investing started in 1993
Capital gain has been a mixed bag
Auckland residential has doubled twice in 17 years
Auckland commercial doubled in 14 years
Wellington residential doubled once in 17 years
Wellington commercial has doubled to tripled in 22 years
Napier 15pc in 4 years
Add another 20pc gain as NZ dollar has moved against the AUD $
But the initial yield has been between 9pc to 14pc
Recent purchases in Wgton 20pc in 4 yrs

As for the future I don't know CG or capital loss

Tool's for research pretty well the same

 

Toowoomba

 

Thanks
had a look for tools, like realestate.com.au that has the invest map with yields and median values etc, but couldn't find anything like it?

 

Hey Coastal,
why toowoomba. Vacancy rates aren't low 2.8%, stock on market isn't decreasing (in fact is increasing) and it's had some grwoth since 2013.

 

These are commercial

 

Sorry, was meaning i know the aussie ones like this that really help in residential, but couldn't find NZ ones.

 

avoid dodgy areas that traditionally have high yield, so don't buy in gagebrook, bridgewater, clarendenvale, risdonvale, or rokeby. very rough, poor quality tenants, and likely to have endless maintenance issues. Prob avoid chigwell too.

you could find 6% yields in many of the northern suburbs - moonah, glenorchy, rosetta, claremont. you could consider sorell, but a lit bit further out. not many good eastern shore suburbs would have yields that high i do not think.

 

I am still buying above 6% gross rental yield in Logan. No townhouses, no villas, no units - plain old standalone houses with little to no renovations

 

hi mate, what price point is this at?

 

Approximately $300k give or take depending on suburb, stock, cosmetic touchups needed etc

 

My house settles in Crestmead (Logan council) next week and I get 6.3% yield from day 1. No renovations no touch ups no nothing.

Brick/Veneer house, 620sqm and nice cul-de-sac quite street.

 

I don't know how investors can even make a profit on a 4.8% gross rental so achieving a healthy income each year must be near impossible
By the time you pay the expenses, do a refurbished, replace a few appliances lose a few weeks your net rental will be down to 3%

 

Awesome this is the exact type of property I'm looking at also. With a little Reno and that price point.

 

What does that come out to Net?
Allowing for all the daily expenses a kitchen, bathroom refurbishment , carpet , painting etc every dozen years ?
I always like to make a profit on my properties as my salary income was never enough to support a loss making property
Now a days I live off this income

 

Plenty of houses in large land for around $300k that need zero work in terms of renovations as you mentioned that will provide over 6% yield gross.

Take away agent fees/council rates insurance your still well in front I'd say especially when you take into consideration depreciation on the place and other tax offsets.

What amazed me was a house I bought for $300k in Logan I got first year depreciation at $6500. Another one I got for $350k depreciation of $7500. Thats first year figures only.

Using the table the first 5 years of tax depreciation are all very similar. That alone is worth the buy if you make a decent wage and pay a crap load on tax. LOL

 

your latest purchase have you done the depreciation schedule?
how does this compare to the old schedule?
are all the stove, carpet, blinds, water heater all removed in the new schedule?