Benny wrote:
Hi Muddle,
   … and a big welcome to you too.   Good to see a new member "jumping right in the deep end and posting"    

  I believe that in the Commercial Investment arena that is exactly how one determines value – all based on yield.   But hey, that also might fall over in a similar way to Shape's comment re "location" – I…[Read more]

Shape wrote:
The equation does exist, but really need to look at other factors as well….as standard it may sound – it does depend on the area your investing.

Ie for example: A older style 2 bedroom unit in Westmead ( Sydney) rents for $400pw — it would sell for average $450,000  — the gross return is 5.2%
( years rent/ purchase price…[Read more]

Shape wrote:
"fair purchase price" doesn't always go by rental return/yield, only works for certain areas and property type.
There's a lot more to "fair purchase price" than JUST the rental return..

What are you actually looking for ?? a number/purchase price where you can break even with your rent??

Thanks Michael:

Perhaps ignore my use of…[Read more]