All Topics / General Property / High Yield Properties

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  • Profile photo of Hot propertyHot property
    Participant
    @hot-property
    Join Date: 2004
    Post Count: 8
    July 6, 2004 - 5:57 am

    Ok so if I bought a commmercial property for $150,000 and rent it for $600 a week does that give me a yield of 20% ?

    Good is the enemy of best!

    Profile photo of melbearmelbear
    Member
    @melbear
    Join Date: 2003
    Post Count: 2,429
    July 6, 2004 - 6:06 am

    Yep, based on a 50 week occupancy…

    Cheers
    Mel

    Profile photo of kay henrykay henry
    Member
    @kay-henry
    Join Date: 2003
    Post Count: 2,737
    July 7, 2004 - 1:15 am

    Tikki,

    I think I have a different view on what is “desirable” than others might have. Checking out industry/employment is important to me.. but I would rather buy in a place that has a University campus, than a pig farm or mine. I used to live in outback Australia, and there were black cockatoos with red tails in my back yard every morning, and kangaroos crossing the roads, and it was just beautiful- very untouched. I would find it difficult to buy into a place that had been savaged by a mine- others wouldn’t- but check out queenstown, tasmania, if you want an example of what I mean.

    So desirable to me is a beautiful place- it could be rural, and with no heavy industry. Each person has different tastes. It’s good to develop one’s own, because it means I am not chasing places other people are. Give me bushland over mcdonalds any day.

    kay henry

    Profile photo of richmondrichmond
    Participant
    @richmond
    Join Date: 2003
    Post Count: 831
    July 7, 2004 - 2:34 am
    Originally posted by tikki:

    Richmond – Hotvaluer pointed out 15 suburbs that he knew of How many people do you expect to know every market value and every rental return of every suburb in the back of the white pages?

    Tikki,

    My point is, cf+ places are not plentiful in Australia. I know there are some around, I know where to find them, and could buy them if I chose. This does not mean they are good investments. Some people look at yield above everything else, but even Steve says there’s a hell of a lot more than yield to consider. When he (and people like Westan) started out, yields of 12% were available in places like Ballarat, Horsham, Shepparton… (just talking from a Victorian perspective, but it’s applicable Australia-wide)… this is not the case anymore. Sure, the odd one might pop up, but they are not plentiful… and I certainly wouldn’t be rushing to some of the tiny one-horse towns to buy solely because of yield. People have been doing that and I think they will get burnt.

    Personally I wish 1HotValuer would flesh out some of his/her posts to offer a bit more to the debate.

    Cheers
    r

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