Is this a good investment deal?

Hi morocco

I can give you my thoughts (have been investing in property since early 90’s) is ou can proivide some more information.

1) What is the weekly rent
2) What are you being offered the unit for (want to check your 4.75% yield claim)
3) What is the body corp
4) What are the rates council rates
5) Are you borrowing the lot or putting a deposit down (if deposit what percent)
6) Where in Sydney?
7) How many units, villas or t/houses are in the block
How old is the block
9) Where is it located (near train station, shools shopping ctrs)
10) Have you spoken to real estate agents to qualify your friends thought on low vacany rates in the block
11) Have you tried speaking to some residents who live in the block (particular owners who might be on the body corp or be aware of any issues within the block)

Also, what is you investment strategy (buy and hold, buy/referb/sell, something else)

With some more details I could give you my 8 cents worth. You’ll still need to do you own research, but I will at least give you some food for thought

Cheers
Simon

Thats a good rental yield for a Sydney property.

Terryw
Discover Home Loans
Parramatta
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I think 4.75% gross is an attrocious investment yield.

Let’s see, deposits:
BankWest 6.6
Citibank 4.75
Citibank 5.85
Commonwealth Bank 5.85
CUA 5.65
Easy Street Financial Services 5.95
Encompass Credit Union 5.6
HSBC 6.2
HSBC 4.75
Illawarra Credit Union 5.25
ING Direct 5.85
Members Equity Bank 6
National Australia Bank 5.9
Power Credit Union 5.4
Select Credit Union 5.85
St. George Bank 5.8
Suncorp 5.9
Unicom Credit Union 5.25
Westpac Banking Corporation 5.25
Westpac Banking Corporation 6.05
AMP Banking 6.3
Austral Credit Union Ltd 5.7

Shares:
ATG Austin Group Limited 19.67%
CMK Cumnock Coal Limited 16.67%
ETW Evans and Tate Limited 16.67%
CFI Colonial First Private Capital Limited 16.53%
COS Cool or Cosy Limited 16.25%
RPG Raptis Group Limited 16.09%
AMO Ambertech Limited 15.39%
VLL Village Life Ltd 15.00%
CNR Coonawarra Australia Property Trust 13.11%
CMV CMA Corporation Limited 12.80%
RAT Rubicon America Trust 12.65%
MPH Magna Pacific (Holdings) Limited 12.20%
MCP McPherson’s Limited 12.07%
RRT Record Realty 11.37%
AQE Aequs Capital Limited 11.36%
CWT Challenger Wine Trust 11.33%
MFT MFS Diversified Trust 10.82%
AAU Adcorp Australia Ltd 10.81%
KRS Kresta Holdings Limited 10.53%
BBB B Digital Limited 10.42%
BEC Becton Property Group Limited 10.42%
CIY City Pacific Limited 10.39%
SLF StreetTRACKS S&P/ASX 200 Listed Property Fund 10.27%
NAM Namoi Cotton Co-Operative Limited 10.08%
CMI CMI Limited 10.00%
RCL Repco Corporation Limited 10.00%
FRR Frigrite Limited 9.94%
VOF Valad Opportunity Fund No 11 9.90%
ALZ Australand Property Group 9.57%
FLK Folkestone Limited 9.52%
RNYCA Reckson New York Property Trust 9.45%
MPR Macquarie Prologis Trust 9.39%
WST Westralia Property Trust 9.38%
ANC Angus & Coote (Holdings) Limited 9.26%
LIP Lipa Pharmaceuticals Limited 9.22%
ZFX Zinifex Limited 8.99%
GSA Galileo Shopping America Trust 8.98%
MDT Macquarie DDR Trust 8.94%

… and let’s add Sydney’s capital growth since 2003 shall we? 32% of properties resold for a gross loss, 59% resold for a net loss after costs, figures much, much higher if holding (interest/rates) costs are included…

The question related to yield, my answer was about yield.

F.[cowboy2]

ps if its cap growth you’re after, I think my gold and silver bullion has still beaten any real estate market in Aus over the last 12 months!@

Dr x has hinted at this.

I think it is very important that we evaluate each investment individually but then also evaluate how it slots into our total portfolio and what the net effect on that portfolio may be.

In order to do that you will have to base your analysis on facts which will be the net result your thourough due dilligence and secondly on assumptions. That’s the tricky part.

How do you know if your assumption are wrong? You won’t until time proves you right or wrong. How do you learn to trust your decisions – by making some – and then being honest about the result.

The truth is that nonone knows whether a particular individual property will work in the hands of a particular investor. I put it that way becuase as property investors rather than investors in other assest classes we have the ability to influence the performance of a property. ( I am learning new ways all the time)

If you do the research and take a position with a property and it turns sour then it is a learning experience. However, the last thing you want is to be thinking – IF I HAD KNOWN THAT I WOULD NEVER HAVE INVESTED (WHEN THE THING IS SOMETHING YOU COULD HAVE FOUND OUT ON YOUR OWN PRIOR TO INVESTING).

Cheers

I Buy Property http://www.cashflowproperties.co.nz
Cash Flow Property