All Topics / General Property / What Gross ROI does everyone look for?

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  • Profile photo of Newcastle KnightNewcastle Knight
    Member
    @newcastle-knight
    Join Date: 2012
    Post Count: 27
    January 12, 2013 - 11:19 am

    Hi everyone, 

        I am looking at buying my 1st IP and am just wondering what do other investors out there look for in regards to Gross Return On Investment. I am thinking 6-7% but am I setting my sights too high? Any feedback appreciated thank you

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    January 12, 2013 - 7:40 pm

    Hi Newcastle

    No i don't think you are over estimating your returns at all.

    Of course just because the Gross rate of return equals 6-7% it doesn't not mean the property will not cost you $$$ to hold. 

    I think you need to add additional analysis to your criteria to make sure the investment property is suitable.

    Cheers

    Yours in Finance 

    Richard Taylor | Australia's leading private lender

    Profile photo of Newcastle KnightNewcastle Knight
    Member
    @newcastle-knight
    Join Date: 2012
    Post Count: 27
    January 13, 2013 - 6:16 am

    Thanks Richard

            I am just trying to get a guage on initial ROI and then take into account other costs like rates, interest, insurances etc 

           Cheers Troy 

    Profile photo of TheFinanceShopTheFinanceShop
    Participant
    @thefinanceshop
    Join Date: 2012
    Post Count: 1,271
    January 13, 2013 - 8:51 am

    Costs and outgoings are going to vary so you really need to look at the net and not the gross.

    Regards

    Shahin

    TheFinanceShop | Elite Property Finance
    http://www.elitepropertyfinance.com
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    Residential and Commercial Brokerage

Viewing 4 posts - 1 through 4 (of 4 total)

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