Where would you buy for yeild?

OK so I have a situation where a close friend of mine has 900k, is retired and wants to buy dwellings in Sydney that will give her a good rental yield. She is completely not interested to put it in any other asset other than real estate. She is not interested in growth just the yield. Does not want units. I have no idea about places for yield so I put it to the collective wisdom of the forum.

Budget: 900k-1mil cash
Place: Must be Sydney
What: Anything but a unit

What would your plan be to get the best yields from property with this budget and guidelines.

Thanks in advance.

 

But what's the strategy?

 

All she wants is to be able to get the best yields/cash flow for her 900k invested in real-estate in Sydney, not high risk areas eg mining towns ect just decent places where the yields are high. CG is secondary. She is not dependent on the income from the rents but obviously would like it to be as much as possible with minimal issues.

 

If was retiring and had $900k to invest I doubt I'd be putting it into property.

Does your friend mean that she only wants residential housing? If she's chasing yield in Sydney, I'd think she'd have to go commercial??

 

She's only comfortable with residential. Really just want to know where and what would you buy if you had to stick to those parameters. I really have no idea as its not my thing.

 

Now is not the time to be buying in SYD for high rental yield. Rents have to catch up with sales prices paid. If she wants resi, maybe look at dual income properties like a house and granny flat which can be found all over SYD.

 

Sydney
Yield

Pick any 1.

 

Any particular suburbs you can recommend?

 

This should be around budget - Linky

No DD done on this but it looks like it has been floating on market for a while and is a private sale. @Leo2413 a wild guess it would be Arthur St North Sydney - unfortunately IT'S COMMERCIAL

 

@Scott No Mates I had the commercial talk to her as it would be my best bet but she's adamant its a no... all I can do is try to find the best plan for her based on what she wants really.

 

Seriously, I'd just stick the cash in an ING Direct account. 3% yield no hassles whatsoever...

 

That's another no no, she doesn't want it in the bank lol

 

If we are talking residential and just yield Western Sydney still has some decent opportunities. Nothing like they were in 2013 but

 

Yeah 3 years ago would have been perfect!

 

My pick at this point in time would be Campbelltown.

If the only criteria is yield, then I'd look for blocks with large land content, well, enough to build a decent Granny Flat. Campbelltown didn't rise as much as the Mt Druitt suburbs, and the yeilds are heaps better than in the West at this point in time.

 

Maybe a home with a GF in Campbelltown? She wont want to build a GF from scratch....

 

I've tried telling her. I have 2 hands tied behind my back , so really I need to just find the best option within her criteria.

 

Can you try a lot harder in convincing her?

Seems very closed minded to not consider the big picture.

 

haha! Oh dear.. so she's determined to give away ~$50k to the NSW Treasury? Tell her I'll take the $50k, then I'll give her 5% yield on her $850k for a fixed term of 12 months.

 

I have tried to persuade her but only to a point. At the end of the day its her money, her decision and I have to respect that really. She is quite closed minded as you suggest.