Hi All,
Has anyone read the latest Rich Dad book, “Success Stories”? I was reading this last night and came across the story of Ronald from San Francisco. On page 227 he describes a real estate deal he went into. The property was a 37-plex somewhere in Texas. What interested me the most were the numbers:
Purchase price: $425,000
Annual rental income: $137,085 (assuming 5% vacancy)This works out to a gross yield of 32%!! [
]We used to be able to rely on at least one post a week on this forum where people complained about not being able to find properties that met the 11 second solution.. which gives a gross yield less than ONE THIRD of this!
Is anyone here still investing in real estate in Australia?
hi Sjs
since no one has yet to reply, i will.
no i haven’t bought in australia since July after buying about 15 in the 18 months before, since around a year ago prices have moved up making it near impossible to buy cash positive in the markets i was buying in Victoria and SA. i’ve actually sold about 10 properties in the past 6 months as i believed i could take that money and invest in new zealand for a better return, this strategy has worked very well so far. Sjs i like to make about a 25% return on the cash i put into a deal (when i put in 20% deposit), this is not possible in Australia unless you are very fortunate. personally i want better than the 11 second rule. my average deal would be 40k renting for 120pw.
if people are finding great deal lets hear about them
regards westan
Has anyone read the latest Rich Dad book, “Success Stories”?Yep, i bought it yesterday actually, for motivation more than anything else… [
]As far as buying at the moment, i’m sure there are probably a few good deals still around at the moment, but i honestly don’t think there are too many “exceptional” ones about…
Even a nice regional area i was looking at has recently overpriced itself… to the extent that a block of four villas that were advertised at 440k was pulled off the market and readvertised at 500k just weeks later… [
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Funnily enough they knocked back my offer of 410k without a moments hesitation when it was at 440, it ended up going for 485… []Property works in cycles, i get the feeling now and the next 18 – 36 mths aren’t going to be so flash…
Cheers,
Paul…“I want to be rich, and stupidly happy – so far i’ve only managed to achieve the stupid part…”
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