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

    Joined:
    18th Jun, 2015
    Posts:
    25,034
    Location:
    Vaucluse, Sydney.
    4th time?!! Surely their position is getting weaker and weaker as a seller and will have to concede to a price decrease soon...
     
  2. big max

    big max Well-Known Member

    Joined:
    30th Nov, 2015
    Posts:
    2,091
    Location:
    Gold Coast
    Agree for sure. I would add Gold Coast also. Great yields on Gold Coast right now especially older units and houses in mid range value areas.
     
  3. Big Will

    Big Will Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,517
    Location:
    Melbourne, Australia
    I think this sale is going to go through, spoke with the REA a couple weeks ago and it sounded like it was done this time. I will be interested in knowing the final price for it.

    Out of the properties I linked before form a pure CF but still with potential of future I would look at the block of units in Beenleigh (although it has sold).
     
  4. Propertunity

    Propertunity Well-Known Member

    Joined:
    19th Jun, 2015
    Posts:
    3,476
    Location:
    NSW
    Generally as a BA I get asked for recommendations on the highest CG areas, not the highest rental yield (or at least a combination of both). I think property is the wrong asset class for your friend if she is ignoring CG and going for yield.
    She might get 7-9% yield in country NSW but why do that with property which has such high transaction costs let alone PM fees and maintenance issues ......and tenants :(
     
    samiam, D.T., 2FAST4U and 2 others like this.
  5. big max

    big max Well-Known Member

    Joined:
    30th Nov, 2015
    Posts:
    2,091
    Location:
    Gold Coast
    Hope Sydney owners are not offended by this. My excement analogy applies not to properties per se, but rather their current poor value as an asset to invest in at present.
     
  6. Sackie

    Sackie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    25,034
    Location:
    Vaucluse, Sydney.
    @big max I knew what you meant mate all good.
     
    big max likes this.
  7. Tony Fleming

    Tony Fleming Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    717
    Location:
    Sydney
    [QUOTE="bob shovel, post: 297669, member: 88"
    Has the ripple maxed out up the hill yet? Blue mtns is still sydney
    First one i found :) stayz place? Or airbnb swingers pad?
    58 Boronia Road Bullaburra NSW 2784 58 Boronia Road Bullaburra NSW 2784 - House for Sale #123947762 - realestate.com.au


    .....this person isn't your wife is it? ?[/QUOTE]
    Bullaburra is a terrible place. Fun fact though at the top of Boronia road 367-369 is apparently owned by McDonald's or one of their subsidiary companies as well as sites in Katoomba. BMCC is never going to let them build in the foreseeable future.
     
    bob shovel likes this.
  8. Sackie

    Sackie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    25,034
    Location:
    Vaucluse, Sydney.
    Makes perfect sense and I agree..
     
  9. Sackie

    Sackie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    25,034
    Location:
    Vaucluse, Sydney.
    Well, if anything, this thread has some more ideas on CF areas outside of Sydney for others to see :)
     
  10. Mick Butterfield

    Mick Butterfield Well-Known Member

    Joined:
    15th Jan, 2016
    Posts:
    739
    Location:
    Bermagui NSW
    If you really want yield get 9 x properties in Atlanta with $900-$1,000 US per month income. No cash flow issues then.
     
  11. Perthguy

    Perthguy Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    11,767
    Location:
    Perth
    Maybe if you work through some examples it would help?

    I am going through the same thing with my parents. Their Melbourne IP is returning about 2.6% of value before expenses. It's not enough for them to live on but is affecting their pension. Mum wants to sell to reinvest in a higher yielding asset but Dad is convinced they will lose half of the capital gain to tax (he thinks the tax on a capital gain is 50%). I can't convince him otherwise :(
     
    Sackie likes this.
  12. Big Will

    Big Will Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,517
    Location:
    Melbourne, Australia
    I think the 70 yo wanted something in Sydney so she can go past and see it or touch it. Buying 9x properties in USA isn't going to be something she will want to consider as one the pain of understand USA property plus she will likely want to see the properties on a regular basis which is will become more difficult as time progresses.

    Brisbane and Melbourne she might travel to but I think going past here will prove more difficult for her to comprehend.

    Don't get me wrong Atlanta may have its positives but I just don't see my grandmother wanting to purchase in the USA.

    This is probably why she wasn't looking at shares as you cant see the shares (in theory) so her mind is I am buying nothing tangible.
     
  13. Mick Butterfield

    Mick Butterfield Well-Known Member

    Joined:
    15th Jan, 2016
    Posts:
    739
    Location:
    Bermagui NSW
    I understand that and was commenting a little tongue in cheek ;)
     
  14. dabbler

    dabbler Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    8,572
    Location:
    Sid en e - olympic city
    Get them to see an accountant, if that won't work, best let them alone.
     
  15. Sackie

    Sackie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    25,034
    Location:
    Vaucluse, Sydney.
    That must be so frustrating.
     
  16. D.T.

    D.T. Specialist Property Manager Business Member

    Joined:
    3rd Jun, 2015
    Posts:
    9,189
    Location:
    Adelaide and Gold Coast
    Yep, but horse has bolted on Atlanta . Need to look at new towns
     
  17. Sackie

    Sackie Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    25,034
    Location:
    Vaucluse, Sydney.
    Are you looking at the US Dave?
     
  18. Perthguy

    Perthguy Well-Known Member

    Joined:
    22nd Jun, 2015
    Posts:
    11,767
    Location:
    Perth
    Yep. Much like your friend!
     
    Sackie likes this.
  19. bob shovel

    bob shovel Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    6,935
    Location:
    Lower Blue Mountains
    US is a myth :p . The American empire is coming to an end.

    @Leo2413 have you said to your friend to give you the cash then you can go to town on a dev and they take a cut? You can back that up with your track record to show numbers.... I'll also need a commission too, this advice isn't free :D
     
    Sackie and Brady like this.
  20. Mick Butterfield

    Mick Butterfield Well-Known Member

    Joined:
    15th Jan, 2016
    Posts:
    739
    Location:
    Bermagui NSW
    It all depends on your numbers and expectations, the numbers on my last one were not as good as our first ones but I would not say the horse has past the post. For interest sake the one we are in the process of securing is a free standing home $75K recently reno'd and with a new tenant (military person) at $875 per month. I still think 14% gross return is good. Also prices are still not where they were pre GFC from my reckoning still some 20-30% to go there also.
     
    Cactus, SOULFLY3 and Sackie like this.

Buy Property Interstate WITHOUT Dropping $15k On Buyers Agents Each Time! Helping People Achieve PASSIVE INCOME Using Our Unique Data-Driven System, So You Can Confidently Buy Top 5% Growth & Cashflow Property, Anywhere In Australia