Where would you buy for yeild?

Discussion in 'Where to Buy' started by Sackie, 27th Oct, 2016.

Join Australia's most dynamic and respected property investment community
Tags:
  1. Sackie

    Sackie Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    12,282
    Location:
    All over the place.
    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.
     
  2. bob shovel

    bob shovel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    6,888
    Location:
    Lower Blue Mountains
    But what's the strategy? :cool:
     
    WattleIdo likes this.
  3. Sackie

    Sackie Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    12,282
    Location:
    All over the place.
    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.
     
    Last edited: 27th Oct, 2016
  4. Phase2

    Phase2 Well-Known Member

    Joined:
    14th Jul, 2016
    Posts:
    1,290
    Location:
    Perth
    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??
     
    Whitecat and Cactus like this.
  5. Sackie

    Sackie Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    12,282
    Location:
    All over the place.
    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.
     
    Shankiedoodle likes this.
  6. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

    Joined:
    19th Jun, 2015
    Posts:
    2,726
    Location:
    NSW
    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.
     
    Whitecat, Cactus and Sackie like this.
  7. D.T.

    D.T. Specialist Property Manager Business Member

    Joined:
    13th Jun, 2015
    Posts:
    8,416
    Location:
    Adelaide, SA
    Sydney
    Yield

    Pick any 1.
     
    Whitecat, Blueskies, Cactus and 3 others like this.
  8. Sackie

    Sackie Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    12,282
    Location:
    All over the place.
    Any particular suburbs you can recommend?
     
  9. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    13,371
    Location:
    Sydney or NSW or Australia
    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 ;)
     
    Sackie likes this.
  10. Sackie

    Sackie Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    12,282
    Location:
    All over the place.
    @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.
     
  11. Phase2

    Phase2 Well-Known Member

    Joined:
    14th Jul, 2016
    Posts:
    1,290
    Location:
    Perth
    Seriously, I'd just stick the cash in an ING Direct account. 3% yield no hassles whatsoever...
     
    Bryan Loughnan likes this.
  12. Sackie

    Sackie Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    12,282
    Location:
    All over the place.
    That's another no no, she doesn't want it in the bank lol
     
  13. Tony Fleming

    Tony Fleming Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    702
    Location:
    Sydney
    If we are talking residential and just yield Western Sydney still has some decent opportunities. Nothing like they were in 2013 but :(
     
  14. Sackie

    Sackie Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    12,282
    Location:
    All over the place.
    Yeah 3 years ago would have been perfect!
     
  15. skater

    skater Capitalist -- www.skatepro.com.au Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    2,828
    Location:
    Sydney
    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.
     
    Whitecat, Gingin and Sackie like this.
  16. Sackie

    Sackie Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    12,282
    Location:
    All over the place.
    Maybe a home with a GF in Campbelltown? She wont want to build a GF from scratch....
     
  17. Sackie

    Sackie Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    12,282
    Location:
    All over the place.
    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.
     
  18. Ace in the Hole

    Ace in the Hole Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,443
    Location:
    Sydney
    Can you try a lot harder in convincing her?

    Seems very closed minded to not consider the big picture.
     
  19. Phase2

    Phase2 Well-Known Member

    Joined:
    14th Jul, 2016
    Posts:
    1,290
    Location:
    Perth
    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. :D
     
    Whitecat likes this.
  20. Sackie

    Sackie Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    12,282
    Location:
    All over the place.
    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.