Hi everyone
I am half-way through Steve’s book (very inspiring Steve – thank you) and was wondering if 10.4% plus p.a properties actually still exist?
I have been searching around the internet and haven’t really found any…there are plenty suggesting 5% though but that doesn’t really stick with the theme of Steve’s book. Have the property price hikes over the last several years eliminated such bargains? If not, I would love to hear recommendations on property types and areas in which they still exist.
Many thanks
AllanHi again – I forgot to mention that I am located in Canberra, Australia.
Thanks
AllanHi Allan,
This question seems to pop up about every week or so.
Umm, yes they do exist. By 10.4% I suppose you mean gross rental return. Yes, they exist, but I doubt whether they are simply sitting there on the net for all of Oz to view, just waiting for Sharon from Rockhampton or Thomas from Launceston or Barry from Katherine to simply snap up.
Usually they are tucked away where locals are sniffing around, jumping on things the day they are listed. If I was an agent, I certainly wouldn’t advertise on the net if I had 4 or 5 hungry clients just champing at the bit looking to sign on the dotted line.
Sure, the dross I couldn’t shift that the eager beavers didn’t want…sure pop it on the net for all and sundry to fight over, but you are generally getting the slops…to utilise a most elegant phrase.
Our group breathed some life into a dingy old complex of rusty old sheds earlier this year. They were doing 4.3% gross yield and probably were similar to what you are passing over right now on the web. I know we were about 6 or 8 months late on the scene, but no-one else was interested so we had a crack at it. Bought it for literally land value only…paid nothing for the 6 sheds or the accompanying tenants (some might say we paid too much for those), and now after 6 months of hard grind and butting heads with very difficult people, we have a fully signed up and leased out group of sheds doing 15.5% gross.
I’m sure these exist in all states (ours is on 1.5 acres 7km from the CBD). It suits us to have people pay our way whilst we pick up the growth on the land while organising ourselves to see what development potential the land has.
They are there Big Al, you just need to scurry around in the chestnut pile and pick yourself out a real winner.
“Right on!”
Cabo Wabo
This property seems to meet the criteria
I’d closely check council flood plans though.
Ajax
Ajax…love that word “possible”…I presume from that the rental is actually $ 0 p.w., not $ 130 p.w.
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