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I have a townhouse in Kelvin Grove which is about 3km from the city. Yield is good at nearly 7%. I’ve found that yields are MUCH better than Sydney or Melbourne and I’ve also read that there is probably still a couple of years of growth in Brisbane. Inner city suburbs still appear strong but many are cautious about CBD apartments short to medium term.
Dear Wilandel,
There are a few good ones around. I have used DepPro for a property in Qld; report cost about $440 and was worth every cent. They seem to be the only Quantity Surveyors who specialsie solely in this area, so it’s their whole business. Washington Brown are another company who do it but they’re more expensive. Both have offices in the major cities. There are quite a few others (have a look in Australia Property Investor magazine and you’ll find a few ads), but make sure that they’re properly qualified and that their reports comply with the Aust Tax Office requirements or you’ll waste your money. The report should provide two alternative methods of depreciation: Diminishing Value method and Prime Cost method. Good luck!
Regarding “tax avoidance”:
Tax EVASION is illegal, but tax AVOIDANCE is not only legal but should be everyone’s aim!
For tables showing rental yields for houses and units for every town and suburb in Australia, get a copy of the current (Dec02/Jan03) edition of “Australian Property Investor” magazine. This will at least point you in the direction of where the high yields are. The figures are from Residex, so they’re well founded.
I’m from Melbourne and moved to Sydney four years ago and rented a house straightaway. I looked at buying a house here but soon realised that the cost of renting vs paying back a huge mortgage wasn’t smart. Instead, I’ve used the difference between my rent and what I’d be paying for a mortgage to buy investment properties – two in the last six months, both cashflow positive. So I get to live in a great house in Sydney with the lifestyle I want and build equity in properties paid for by others. I highly recommend this approach.
