Okay, maybe some of the others posters in here can shed some light for me.
In another thread Kay Henry said:
If you’re looking for pozz geared properties, you’ll find them, but if you’re seeking a bit of growth, and about 8% return, you will have a far broader choice, and will be buying places that tenants will want to live in.
I am somewhat perplexed; most landlords in today’s rental market seem to be struggling with 5% rental returns, so to say there are possibilities of achieving “about 8%” would be awesome (especially if it is net) even if it is gross it would be fantastic.
Can any of you fellow property investors tell me, whether these sorts of returns are achieveable and if so, in which cities/states??? Or indeed, is this only possible in NZ investments, as I personally can’t see it as realistic here in OZ !!!
Please note: This is not an attack on Kay and/or her comment, I just thought maybe others in here could confirm that there is in fact some truth to such a claim.
Indeed, I am grateful to you Kay, if there is such a possibility maybe I need to look elsewhere, and your comments may be helpful not only to me, but many others, who are obviously not looking in the right areas!!!
Thanks in advance,
Jo
Monopoly,
I am sure probably 80% of people on this board are achieving 8% yields on their properties. It is a positive gearing forum, after all. Half the posts on this board are discussing yields, and 8% really isn’t anything to write home about. On Somersoft, as mAny of them are negative gearers in a big way, the yields might be a bit less. But on here, everyoe is into maximising yields. I’m not sure why you’re perplexed. 8%- on a pozz gearing board- is pretty average.
kay henry
I understand what you’re saying Kay, and I am not disputing that. FYI, I am more than aware that this site is a heavily pozz geared forum; but thanks for the reminder!!
Anyhoo
your comment gave me the impression that, yes pozz properties are out there (no argument there) “but if you want ……” so am I mistaken in thinking that your “but” (please, no smart comment was intended here!!!!) was rather an inference to neg geared properties???Of course, 8% pozz is more than achieveable, but as I said, your comment implied this was likely for neg geared as well, and as such holds (IMO) no merit, as this is (again IMO) not realistic.
Jo
Monopoly,
Yields of 8% and more are achievable in Queensland regional centres such as Toowoomba, Mackay, Townsville, Cairns, Gladstone, Rockhampton, Bundaberg. Not easily achievable, but they do bob up from time to time (note I am talking about residential).
Cheers
rThank you Richmond,
A straight answer!! [medieval]
Yes I am sure that the “odd” one does.
Cheers,
Jo
The property I bought before my most recent purchase was in Inverell – 1.5 hours west of Armidale. I didn’t do much research, but Inverell has got a reasonable population and I gather some of the smaller surrounding towns are losing residents to Inverell – Tingha for example is a ghost town. I’m not sure exactly what the yield is on my place there, but it’s over 11% + there are some depreciation benefits.
There are half a dozen agents in town, but from memory only one advertises on realestate.com. I mention this because there was a post recently about how people need to search beyond the internet for properties.
ScottWell done depreciator!!! [thumbsupanim]
Yes I agree, such properties are available, but they are not easy to come by, and no doubt as time passes, will become harder to track, but certinaly not IMPOSSIBLE. And of course, with the benefits of depreciation (an area which I know you excel in) higher yields are not out of reach.
However, these properties IMO are rarities, and when making such a claim, it is worthwhile (especially for the sake of “newbies”) to emphasise that although they are out there, they are not as common as one would like to imagine. BUT with a bit of effort, research (on and outside of net) anything is possible!!!
Cheers,
Jo
Monopoly,
It takes lots of searching in the beginning, but there a quite a few out there… just a matter of looking….
We get approached with lots regularly….
<edited 03/8> It’s about doing your homework…. you need to get out there and build your own team of people who will help you to run your business….. no shortcuts……
Cheers
ScottDepreciation is a bonus. I sort of like regional purchases to stack up without it, which is pretty illogical I guess. Having said that, obviously my metro properties have shocking yields and depreciation compounds the deductible loss, which is great when I’m paying so much tax.
Looking for properties beyond the net is critical given that so many people are searching on-line.
Out of curiosity, I just looked at Inverell on realestate.com. The Raine and Horne office is the only one up there advertising. It’s long drive from any capital city if anyone wants to go looking on the ground.
It seems there’s an airport for sale there, too. It’s years since any airline flew into Inverell.
Hi depreciator,
I just sent you an email with the following link, but just in case it didn’t work, here it is again:
It is just a quick overview report from http://www.reports.rpdata.com.au which is a good starting point. As for research, having acquired 5 degrees during my academic lifetime, the word “research” is way toooooo much a part of my vocab!!! [laugh4] [laugh4] [laugh4]
Cheers,
Jo
Monopoly,
I am wondering how many responses to this thread you will have to receive before you consider that 8% yields are not so much a “rarity”.
You said:
“However, these properties IMO are rarities, and when making such a claim, it is worthwhile (especially for the sake of “newbies”) to emphasise that although they are out there, they are not as common as one would like to imagine. BUT with a bit of effort, research (on and outside of net) anything is possible!!!”
I will not be adding a disclaimer to my posts at all. 8% yields are no big deal whatsoever, and dozens can be found on a quick search of realestate.com.au. Indeed, all of the responses so far have indicated that 8% yield isn’t hard to find. “Newbies” are only inexperienced, but if any person is given the right tools, they can find 8% yields as quickly as any other person can. I wouldn’t patronise new investors by suggesting that something that I can find so easily is a matter of “luck”, when really, it is just about spending a half hour on the net to find such properties. 8% yields are so mediocre that it’s quite simple to find them- now, >10% is probably quite a bit harder, but others seem to be able to find them too.
If I can find 6% yielding property in the middle of sydney (without even trying) then finding 8% yields in smaller cities and regional areas is a piece of cake.
I think newer investors also want some hope, and in this case, it isn’t false hope. I would suggest that if people are unable to find 8% yields, they are not looking hard enough.
kay henry
Monopoly
I am currently selling 4 houses one of which has a 2 year lease (only 6 weeks into it) that has a 8% return on the asking price. It’s in Victoria and I think (and the agent seems to agree) that it is fair market value. It’s even advertised on the net with an 8% return so they are there if you look.
(ps – this is not meant as advertising, I kept info to a bare minimum – if the moderators think it is please feel free to delete)
Where???????????????? [blink]
[laugh4][laugh4][laugh4]
Oh puhleese!!!!!Originally posted by Malachii:Monopoly
I am currently selling 4 houses one of which has a 2 year lease (only 6 weeks into it) that has a 8% return on the asking price. It’s in Victoria and I think (and the agent seems to agree) that it is fair market value. It’s even advertised on the net with an 8% return so they are there if you look.
(ps – this is not meant as advertising, I kept info to a bare minimum – if the moderators think it is please feel free to delete)
Hi Malachii,
That’s great [thumbsupanim] but FYI and anyone who cares to READ my comments:
I NEVER SAID IT WAS IMPOSSIBLE!!!
Apart from giving my opinion, the only other thing that seems to have upset anyone is that I felt posts should be carefully orchestrated lest they give the wrong interpretation. There was no malice intend to anyone directly or otherwise!
All the best with the sale; hope it’s a winner for you.
Jo
I have recently seen someone getting more than 8% yield on a property in a good area of Sydney.
Terryw
Discover Home Loans
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
This has been a CF+ forum for as long as I remember. The most basic question has always been “Where can I find CF+ Properties”
I am bemused to see that even the Moderators now need to ask this question in the current market conditions. Doesn’t say much for inexperienced investors who have recently been drawn to the site after reading Steve’s latest book.
Is asking a question a crime???
All I wanted was clarification, when is that wrong???
Thanks Baloo, I feel so much better now.
Jo
P.S. Maybe the moderators for this section can lock or delete the thread, it seem to be getting out of hand.
Hi,
Let’s bring this thread back to it’s basics.
Jo, you ask about 8% yields. I think that properties offering this sort of return are like red cars… once you start looking for them they are all over the place [smiling]
I think that’s way Kay Henry was trying to say… they are out there but it’s a matter of looking rather than being led to a particular area.
Having said that, Richmond has listed out some areas where such deals may be more commonplace than other but there will be houses there that offer all sorts of yields.
As for the issue re: moderators asking questions – what’s wrong with this? They’re here to lend a helping hand and don’t hold out to be investing experts.
Cheers,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Us moderators are not self proclaimed experts! I am aware of the dificulties many people have in finding that compromise between return and location.
There is nothing in this thread that should give anyone reason for feeling challenged.
Have a super day everyone – I know I am (except for the wallpaper I am attacking later on [angry2] )
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
Thanks Steve/Simon,
Trust you two to be voices of reason!!!
I felt it was my right as a poster to be able to ask this question, albeit it has been asked to death. I still find it surprising that clarification had to come from the boss, rather than the person to whom the question was directed in a separate thread, but hey, that’s cool I ain’t expecting miracles!!!
As I said earlier, I didn’t say these places didn’t exist, and still hold the opinion, that they are “rarities” (kind of like little precious gems). I don’t expect anyone to share my view, nor do I feel that it should take any number of posts to convince me otherwise.
For those of you who are prepared to venture outside your own backyards, I applaud your courage, determination and enthusiasm and rejoice in your success. Well done!!!
Kindest regards,
Jo
your comment gave me the impression that, yes pozz properties are out there (no argument there) “but if you want ……” so am I mistaken in thinking that your “but” (please, no smart comment was intended here!!!!) was rather an inference to neg geared properties???
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