Hi,
I’ve been reading a few books on property investments and each author has their own opinion as to what represents strong capital growth and high rental yields. Can anyone tell me what would be:
1) a strong annual average growth, would it be 8, 10 or 12% p.a?
2) a high gross rental yield, would it be 3, 4 or 5% p.a.?Cheers
Orlando
My view
Capital growth >8%
Rental >6%10 year House capital growth in Sydney 7.11%
10 year Apt capital growth in Sydney 6.28%
(as of Nov 2015)So basically pick any number above this…….
Hi I’m new to the forum, currently my husband and I are trying to ready ourselves for our first investment property. One bank has offered us an 800k loan, this is more than we imagined spending. But then we only imagined a unit or apartment but have since picked up that rentable house and land is better?
Our accountant wants to negative gear this property, we run a company, but how do we select a property based on this, should we look for a low rental yield and a higher purchase price?
We have had a broker in Sydney recommended to us even though we live in Melbourne, how important is the face to face aspect of this kind of relationship and how much more valuable might a local broker be, if at all?
We need an ongoing relationship with financial advise attached and would like to build a portfolio and make an income from rental properties eventually. Is it normal for the first IP to be negative geared and then hopefully all future properties positive geared?
Anyone have opinions on investing in house and land in Spribgvale, Clayton areas?
Any thoughts appreciated.
Hi Gabsy,
Well done on putting your question “out there”. Starting any new venture can always be a bit un-nerving, so calling out for assistance is a smart thing to do in the early days.Is it normal for the first IP to be negative geared and then hopefully all future properties positive geared?
Having the first property negative geared MIGHT help some people, depending on a host of things – the major one being “Does losing money on this give you some GREATER benefit into the near future?” e.g. You might have the opportunity of buying a place that is easily able to be developed or renovated with a great chance of creating Equity – but you HAVE to buy it NOW or lose the opportunity, and it would be negative-geared until you completed the reno or development.
Watch out for those who say “Negative gear to save tax” – especially if they just happen to know someone who can sell you a high-priced house where the rent is guaranteed…. RUN away from such people!!
Check this out to get more of an insight:-
https://www.propertyinvesting.com/topic/4410491-the-big-picture-for-new-readers-especially/#post-4992671Benny
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