2012 yield locations

[Jake Milne]

Good info guys.

I was not aware of SQM; seems like a good resource. Pity there's no transparency as to how they collect their data.
I know API uses RP Data/Rismark's hedonic stats; which are arguably the most accurate in the country but yeah surprised that they're so off!

Great to learn more about Moranbah; other states aren't my specialty and I am glad you've filled us all in; thanks!

 

[mattnz]

Good info guys.

I was not aware of SQM; seems like a good resource. Pity there's no transparency as to how they collect their data.
I know API uses RP Data/Rismark's hedonic stats; which are arguably the most accurate in the country but yeah surprised that they're so off!

You mean this transparency at the bottom of the page? http://sqmresearch.com.au/graph_vacancy.php?t=1#terms

Rental Vacancies

The Rental Vacancies component is based on all monitored and unique online listings for the period of a calendar month. The series starts off in January 2005.

All listings are taken from online monitoring of major listings sites. Only those properties with unique addresses or a unique listing id are used. Those advertisements with no addresses are excluded from the series. Any addresses repeated between sites are de-duped.

Only those listings that have been advertised for three weeks or more (and are still currently advertised as at the time of collation) are used.

 

[devank]

They have modified/improved the way they calculate the vacancy rates recently.

 

[Jake Milne]

Jamie what kind of gross yield %'s are we talking?

redwing those places sound great; how do you go about understanding those markets and their laws?

engelo10 what kind of numbers are those suburbs in WA showing?


Thanks mattnz; So they data mine the "major listing sites" (unspecified) and then compare that to their estimates drawn from the 2006 census?

How are their total stock estimates calculated?
Why are they pulling the data from the internet rather than the aggregated state based real estate institutions?

 

[engelo10]

Hi Jake,

Around $180,000 is great buying for the area and with a minor tidy up a rent of $300pw is achievable showing around a 7% net yield after costs.

Rental market is really tight and tenants are outbidding each other to secure a rental. This was indicated to me by many local agents.

Engelo

 

[Jake Milne]

Thanks Engelo, looks good.

I've just found a rural property that is off market for ~$45K.
It's leased @ $150pw.

There are some concerns but if everything checks out I'm thinking of making an offer for around $38K.

My total purchase costs, including deposit would be under $10K.
The property's gross yield is 20.21%

Furthermore, the house is in an area where the median is 100K+.
I intend to negotiate a 90 day settlement subject to finance; spend $15K on renovations to increase value to an estimated $80K.

 

[strongy1986]

Thanks Engelo, looks good.

I've just found a rural property that is off market for ~$45K.
It's leased @ $150pw.

There are some concerns but if everything checks out I'm thinking of making an offer for around $38K.

My total purchase costs, including deposit would be under $10K.
The property's gross yield is 20.21%

Furthermore, the house is in an area where the median is 100K+.
I intend to negotiate a 90 day settlement subject to finance; spend $15K on renovations to increase value to an estimated $80K.

Why do a rennovtion and risk losing the tenant? Also spending 15k on a house worth 40 is a waste of money.
It's 40k because thereis no demand for the area. Spending 15k wont change this.
Only an opinion

 

[Jake Milne]

As per value - "the house is in an area where the median is 100K+."

There are ~90 investment properties in the town and the vacancy rate is around 1%.

Even so, I would look to negotiate with the tenant to see if his tenancy could continue/resume after the renovation is complete.

 

[MTR]

Medina, Orelia and Parmelia are showing some great numbers in WA,

Hi engelo
I am from Perth and know these areas, typically State housing areas.

A house at $180K is a tough call in any of these areas, Medina would be your best bet, if you were lucky enough to pick up a property at $180, you would need to throw money at it for sure.

Cheers, MTR

 

[MTR]

Hi All
I have been purchasing in Altanta, GA at 20% gross, averaging 15% net.

Started 12 months ago and have 8 properties now and can say that the experience so far has been great.

I am now purchasing in Oz, so now I am back to the realisation that I am lucky if I can achieve 5-6%.

Just noticed its my 1000th post.... that took while

Cheers, MTR

 

[Jake Milne]

MTR - you've bought 8 in the last 12 months?

Walk us through it?

 

[geoffw]

MTR - you've bought 8 in the last 12 months?

Walk us through it?

It would be worth a new thread

 

[Jake Milne]

It would be worth a new thread

+1 - Quoted for truth

 

[engelo10]

Thanks Engelo, looks good.

I've just found a rural property that is off market for ~$45K.
It's leased @ $150pw.

There are some concerns but if everything checks out I'm thinking of making an offer for around $38K.

My total purchase costs, including deposit would be under $10K.
The property's gross yield is 20.21%

Furthermore, the house is in an area where the median is 100K+.
I intend to negotiate a 90 day settlement subject to finance; spend $15K on renovations to increase value to an estimated $80K.

Hi Jake,

I wouldnt be paying more than $25,000 especially if its a small regional town. Submit a $20,000 cash offer and see how they respond.

The less you pay the more the risk is minimized. Those numbers seem to work well with the $180pw rent.

 

[engelo10]

Hi All
I have been purchasing in Altanta, GA at 20% gross, averaging 15% net.

Started 12 months ago and have 8 properties now and can say that the experience so far has been great.

I am now purchasing in Oz, so now I am back to the realisation that I am lucky if I can achieve 5-6%.

Just noticed its my 1000th post.... that took while

Cheers, MTR

Loving the US market at the moment. I'm working on some big projects there.

Have a great team on the ground who I have been working with for the past year. Spent numerous Skype and phone calls to get everything ready.

 

[engelo10]

Hi All
I have been purchasing in Altanta, GA at 20% gross, averaging 15% net.

Started 12 months ago and have 8 properties now and can say that the experience so far has been great.

I am now purchasing in Oz, so now I am back to the realisation that I am lucky if I can achieve 5-6%.

Just noticed its my 1000th post.... that took while

Cheers, MTR

What are the numbers on your purchaser?

Did you go through a buyers agent?

Shoot me an email if you wish.

Thanks

 

[geoffw]

I've put MTR's post into its own thread, as it's deserves its own treatment.