Where would you buy for yeild?

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

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  1. Sackie

    Sackie Well-Known Member

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    @bob shovel i'm a chicken when it comes to using other people's money for a development mate. I wouldn't sleep at night, would be too concerned with A) not losing their money and B) making a good return for them. I know your only joking but seriously the thought of using OPM (not the banks) to do a development...scares the hell outta me. If I fail, I would only want to lose my money and no one else's, And so many things can go wrong with a development, it's not like just buying an IP and renting.
     
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  2. bob shovel

    bob shovel Well-Known Member

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    I don't joke around.
     
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  3. Tony Fleming

    Tony Fleming Well-Known Member

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    Would she consider Regional NSW?
     
  4. bob shovel

    bob shovel Well-Known Member

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    2 things wrong here
    1. You used the F word. Off to the mindset corner
    2. the hardest part is the size of the novelty check.the builder does the rest :D
     
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  5. Sackie

    Sackie Well-Known Member

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    I wish it were that easy :p
     
  6. RetireRich101

    RetireRich101 Well-Known Member

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    my dual incoming properties (Sydney West) are currently returning 4.5 - 5.5%. They were 7-8% three years ago.

    You could buy one in Marsden, QLD 300k + build GF 120k = 420k. Would get $600 rent, would yield 7%. And you could buy 2
     
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  7. RetireRich101

    RetireRich101 Well-Known Member

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    I could sell her mine dual income in Sydney West..We just round it off to $1m
     
  8. See Change

    See Change Well-Known Member

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    depends how close friend , but if it was me I'd probably take the line , I don't think it's the right thing to do so I'm not prepared to give you advice that I think is incorrect . I do that at work every so often and quite often people come back later and say , " Ok I respect that , what do you think I should do " , if not that , they just think I"m an opinionated D....head :eek: . Seriously I'm not ...:p .

    I wouldn't buy ipswich if she wants yield ... Yes it has high yield , but to me if she wants sydney , she probably would like a more " sydney " type area and ipswich aint it . it does have some nice areas , but it also it's share of 2770 areas as well . It suggests to me she wants a " Safe " investment and with Ipswich , it's like Mt Druitt , it stops for a long time and is hard to sell and you never know when circumstances change .

    On the basis of areas I know , I'd look at Hobart , around west Moonah . I'd also look at wynnum / Manly in brisbane and maybe Brighton Sandgate . For some one from Sydney , I think they feel more Sydney than alot of places in Brisbane . . The would be in the middle ring in Brisbane , though I don't know enough to say which areas . If he hasn't already replied , I'd take to Steven Ryan .

    When I saw the title I was thinking Launsceston but that was before I read the OP.

    Cliff
     
  9. samiam

    samiam Well-Known Member

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    if she doesn't bother capital gain, she could just eat up capital. 45k/year for 20 yrs for 70plus not too bad. no headache dealing with tenants :p
     
  10. Sackie

    Sackie Well-Known Member

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    Thanks for the suggested locations @See Change

    Someone actually even suggested Goodna.
     
    Last edited: 27th Oct, 2016
  11. Sackie

    Sackie Well-Known Member

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    She wants to keep the equity for her kids. She's actually financially OK, just wants to park her money in some Syd places for now.

    I think I will do what everyone suggests, reintroduce the idea of other places outside Sydney (some of the places suggested here) and if she still refuses and wants to buy in Sydney then I am just not comfortable to be involved and I'll make that clear.
     
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  12. samiam

    samiam Well-Known Member

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    you are a good friend
     
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  13. Sackie

    Sackie Well-Known Member

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    She's a very nice lady but you know how oldies can sometimes be stubborn...very fixed in their beliefs which makes it frustrating.
     
  14. Perthguy

    Perthguy Well-Known Member

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    Yes! But sometimes they can be brought around. My dad has asked his accountant how much it will cost to sell Melbourne with a view to reinvest in Adelaide. That will be a significant boost to their income.
     
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  15. See Change

    See Change Well-Known Member

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    Given the back story in this situation , I wouldn't suggest Goodna . I think she wants " Nice " " Safe " properties . Has she ever been to Mt Druitt ?

    Personally , I wouldn't trust the BA's who seem to be buying there and it's not the sort of place that's going to appeal to someone who want's to buy in sydney , . They seem to be buying for yield without much concern for the actual property as long as the yields are ok . I saw one high yielding property sell quite quickly and I wouldn't have touched it with a ten foot barge pole .

    Cliff
     
  16. Sackie

    Sackie Well-Known Member

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    I doubt she's ever been outside of the eastern suburbs haha..

    With regards to Goodna, they buying anything regardless of how sound or unsound the structure of the dwellings are..?
     
  17. See Change

    See Change Well-Known Member

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    According to the agents , the BA's aren't particularly discriminating about what they're buying as long as the yield is ok , though if it was a termite infested hovel they'd pass . The ex house ones are quite good structurally so there's not too much wrong with those , but some of the private ones are problematic .

    cliff

    The one
     
  18. See Change

    See Change Well-Known Member

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    Maybe they should buy a unit it Dee Why . Wouldn't get much in Manly for 900 .

    But some " investors " are happy with low yields . Our Unit in Manly we just sold was bought by a local investor .

    Cliff
     
  19. Sackie

    Sackie Well-Known Member

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    The yield must be terrible for a unit there bought now..
     
  20. Karina

    Karina Well-Known Member

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