Where would you buy for yeild?

Punchbowl
Wiley park
Greenacer

A 3 bedroom fibro within 15 km to Sydney cbd is still affordable and easily rented out, just my 2c

 

Sheesh!

 

Using the realestate.com.au "Invest" tool, selecting 3 bd houses and choosing "rental yield" on the top right, you can move your mouse across different suburbs. Haven't come across any that yield more than 4%. Sydney Investment Property Market Data

 

Not my cup of tea....but she could get something like this:
House with Attached 2 bedroom Granny Flat Spring Farm NSW 2570 - House for Sale #123094898 - realestate.com.au

 

Your friend needs to wise-up. You should be telling him/her about mindset and books and education before jumping into a peaking market. Take a look at this recent thread, too.
$900K inheritance - zero property

 

Thanks Skater, I think maybe the GF idea is something to look at.

 

I have tried to tell her already all the above great advice regarding low yields, market conditions ect for residential, but she still wants to go down this path. I told her to speak to a FP (one who I know is quite good and not bias towards any asset class, product etc) but she just wants me to give her my advice within the parameters she has. So it looks like a dual income sort of dwelling at the moment,

 

Sounds like a bank! If she doesn't care about growth then she should just lend to someone to buy the property and charge 4.5% interest. She will have "interest" in the property by taking a mortgage over it.

Otherwise, I think it's multi-room properties that she can rent out to students near a university, or dual-living. That'll give her the above average yield she wants.

 

Just remember that you don't have to have all the answers. Or maybe more like: stick to your guns whether she likes your realistic answer or not.

 

I would wipe my hands clean of giving her any 'advice'. This is only going to end in a friendship breakdown. Whatever you put forward will never be good enough for her! Run......fast.

pinkboy

 

Yep I might just end up doing that as it would make me feel more comfortable. She would still be at square 1 though.

 

We are where we are. Maybe she needs to join up.

 

She knows I am not so eager to help because I don't agree with her idea and feel uncomfortable... Never been in this situation before.

 

Lol. The irony is that right now is a very high risk area. Much more risky than Perth for example. The stupidity of soMe people never ceases to amaze me but bless them we need them as those of us who actually know how to value assets make use of these people to make money buying low and selling high.

 

People can't be helped if they won't listen. If you're not comfortable helping her with her idea, then just tell her that. You've obviously told her what you'd recommend, so I'd just leave it at that.

It's not that you don't want to help, (you obviously do). In this case though, you just can't help. Nothing wrong with that.

 

If you guys were to pick another State, where would it be?

 

My friend wants to eat some excrement. He is determined to eat some. Could you advise on which piece would be the most delicious to choose to eat?

 

Maybe that is the safest square for her at this stage.

 

For yield with good CG prospects I like SE Queensland (I bought in Ipswich and was able to buy well) good economic drivers now and into the future. I am leaning towards getting another one there in the coming few months with a bit of val add/dev potential.

Outside that I like Geelong, Hobart or NSW coastal at a pinch.

 

You need an intervention! Take her hostage and waterboard her till she complies.