All banks calculate your income and your expenses using different methods. The income minus expenses creates either a surplus or deficit. You’re likely in a deficit with your current bank. You may well be in a surplus situation according to another lender. Not really possible for anyone on here to give you hints on which bank because we don’t know your income, circumstances, current debt levels, goals, etc

@cjaysa above can likely give you a hand.

Wouldn’t put any hope in Whyalla at all.

Assuming you want to buy in South Australia – You’ll get more chance of growth, and probably about the same yield in metro Adelaide.

JohnnyK wrote:

Using Steves rule the following is my 3rd property with this rule 8.4% and each has been getting better returns .. but the trick is in the research finding properties which are straight away returning $$$ .. I don’t see any point in putting my money into subsidising someone else’s rent
$220/w x 52 = $11440$11440 / $135000 x 100 = 8.4%4.5% interest plus 1% = 5.5%
the other two properties return 7.6% and 8.2% all bought this year

Well done. Where are they located?

Hiya,

Nice thread.

Adelaide is pretty good for cashflow positive deals which fit Steve McKnight’s formula.

I have a portfolio full of these but here are a couple of more recent examples:

Craigmore:
$175,000 purchase, had a sitting tenant paying $220 per week which I recognised was under market. Their lease ended within a couple of months, let them out and got another tenant paying $250 which is increasing to $255 this week. This is 7.5% yield on purchase. Nothing spent on it at all.

Elizabeth Downs:
$250,000 purchase for a pair of semis on 1 title. Has sitting tenants paying $375 per week between them which is under market. When the leases finish will easily get $400 between them which represents 8.3% yield on purchase. No reno done but could achieve more rent if one was done.

Morphett Vale:
Client’s property. $190,000 purchase, $20,000 renovation done, I did a rental appraisal at $305pw. This is 7.5% yield based on combined purchase price + reno cost. It was revalued by the bank at $275,000 after the reno.

I use and recommend @cjaysa , he was initially interstate when i first began using him and it was really easy to get everything done by email. I moved to SA (same state as him) and we still do things by email, so I doubt a face to face broker would have made any difference.

Hiya,

That’s the correct way to apply the formula, and satisfies Steve’s rule for CF+

However, the property is a semi which I wouldn’t buy because
a) Lower quality tenants usually apply for them
b) You have no control over what happens to the adjoined semi. If it burns down or gets an unsavoury tenant then that’s going to impact on you as well.

I’ve found Salisbury North to be a decent enough area for CF+ though.

Hiya,

When I was living in Perth I was using @cjaysa in Adelaide from these forums. For these sorts of things you really ought to use the best in the country regardless of where they are. You’d need to email your documents back and forth anyway.

1 block into 2 new torrens titles will run you about 20k-25k in Adelaide

Hey mate

Well worth having a chat to @cjaysa , he knows how to get these sorta deals over the line every time

Just the usual stuff we all have to pay like $550 insurance, $1200 council rates, Property Management, Water, etc.