Block of 4 units for $350,000 rent $800 - $900pw 12.5%+ yield.

[Nathan]

Property is in a 50,000+ population.

It is a humble block of units.

Its in queensland, and 12.5% is not anything too great.

I just exchanged on an actual commercial property for $455,000 and have macdonalds looking over a lease on it now if we want to talk yields.

If i ever post a property its owned by myself 100% not jv. I have only ever done one jv deal which was a nothing size deal for giggles which was for a 2 week turn around only.

Hope this clarifies things.

If anyone wants to question my portfolio its buy and hold portfolio it is over 70 properties and these are owned by my own entities so i speak for myself.

 

[Nathan]

Also to reiterate, my portfolio was not too different to what it is today before the business. Hence why i wear thongs around and do business on terms in line with lifestyle as it is merely for self forfillment purposes obverse to selling a story or product.

Always been very transparent and will continue to do so.

 

[Nathan]

Ps, 8-10% yields can still be found in west sydney, central coast, brisbane, gold coast and alike. If regional, i would expect to see much higher than the returns being thrown around on here.

 

[TMNT]

Ps, 8-10% yields can still be found in west sydney, central coast, brisbane, gold coast and alike. If regional, i would expect to see much higher than the returns being thrown around on here.

go on, ill bite

post a few regional and non regional ones with figures,

id love to see, in paricular west sydney, brisbane and a few regional

 

[DaveM]

TMNT not unit blocks, but I have bought 2 properties in western sydney this year returning 8.5 and 9.2% gross. I have also bought some regionals varying from 7.5% to 12%.

I have met Nathan a couple of times and while I cannot speak for his investments and strategy with any authority, he is a straight shooting and down to earth person to speak with.

 

[TMNT]

TMNT not unit blocks, but I have bought 2 properties in western sydney this year returning 8.5 and 9.2% gross. I have also bought some regionals varying from 7.5% to 12%.

I have met Nathan a couple of times and while I cannot speak for his investments and strategy with any authority, he is a straight shooting and down to earth person to speak with.

I dont know nathan nor have any sort of opinion of him,

Im more curious if these say 9% deals in west sydney, are with/without renos, or once a in a lifetime deals, eg 50% off true market value, or what % or actual $ figures off the true market value he is getting,

and if my purchases are the same sort of territory then I will congratulate myself, and if not, then its something to work towards

 

[DaveM]

I dont know nathan nor have any sort of opinion of him,

Im more curious if these say 9% deals in west sydney, are with/without renos, or once a in a lifetime deals, eg 50% off true market value, or what % or actual $ figures off the true market value he is getting,

and if my purchases are the same sort of territory then I will congratulate myself, and if not, then its something to work towards

The comments about Nathan were not aimed at you sorry, they were just for some context for some earlier comments.

The returns for me at least are post reno figures... buy something that needs work, I am reasonably handy + trades to do a low cost reno (I can do a paint/robes/lights/kitchen/blinds reno for about $5k), increase rental yield and value, the usual stuff that many here have been doing successfully for a long time.

 

[TMNT]

The comments about Nathan were not aimed at you sorry, they were just for some context for some earlier comments.

The returns for me at least are post reno figures... buy something that needs work, I am reasonably handy + trades to do a low cost reno (I can do a paint/robes/lights/kitchen/blinds reno for about $5k), increase rental yield and value, the usual stuff that many here have been doing successfully for a long time.

wow thats pretty good,
I either use the $750 bunnings ones, or for a L/U shaped one I use a $2000 kitchen which is far better, however almost 3 times the price,

may I ask what sort of kitchesn you use? and for how much

 

[jim1964]

go on, ill bite

+1.Posting the returning yield is only part of the story!

 

[DaveM]

+1.Posting the returning yield is only part of the story!

One of the issues I have had with costing up unit blocks is the ongoing costs equivalent to an admin fund soak up lots of the cashflow... insurance, lawns and gardens, house power, water, general repairs etc. Plus putting aside an equivalent of a sinking fund for future works. There was not a lot left over at the end of it all.

I am sure there are some good returns, I have not really found small blocks so far that return a worthwhile net cashflow, bigger ones seem to be a better deal, but more than 4-6 units on the title lenders get more antsy and want commercial loan terms.

 

[Aaron_C]

I am sure there are some good returns, I have not really found small blocks so far that return a worthwhile net cashflow, bigger ones seem to be a better deal, but more than 4-6 units on the title lenders get more antsy and want commercial loan terms.

Depends on where but sometimes you can get up to 80% on resi terms with up to 10 units on one title.

 

[ritchie77]

Hi Aaron, woul that be for stronger areas in syd (but difficult to get in say regional/smaller towns in qld)

 

[Qlds007]

Hi richie

Yes will depend on the comparative sales of unit blocks for the area.

As long as other properties have been sold upto 10 units on the same Title are doable at standard rates.

I have just written an article for the API magazine about Strata Titling does and don't which aires Feb / Mar 13 issue.

 

[Rolf Latham]

Hi Aaron, woul that be for stronger areas in syd (but difficult to get in say regional/smaller towns in qld)

That to some extent, but also the quality of the borrower and what other exposure they may have to the limited lenders that will do more than 4 on one title on resi LVRs and rates

There are still restrictions as to indivdual unit size and sometimes silly things ( like own internal laundry etc)

decent regional (rated as category2) should not be an issue providing all else fits


ta
rolf

 

[saiman]

well done Nathan - great deal

I would suggest most of the stuff Nathan buys today for himself would be considered high risk for most investors.... but since he has a large number of cashflow + properties already in his buy and hold portfolio including many standard resi stuff, the "real risk" for him is far less to venture into more interesting deals...

I find Nathan and his team are excellent in gaining access to amazing deals of all types and risk levels but at the end of the day it is down to the individual investor to decide what will work for them and what won't

 

[eternit]

the property is probably in Cairns. and I am sure that 12.5% is gross yield. Just remember the council rates are very expensive in Cairns. Not hard to find these deals in Cairns.

 

[MTR]

No problems with that .......I recently learned from a friend that some who knows invested with a company (not Nathan's) who claimed he had over 100 properties. The work around the traps was that he as counting all the Joint Venture properties where he has a minor interest. Needless to say that person intiatially start with investing ....but then started making money via seminars. ...to the point...they stopped buying properties as the seminars were more profitable......food for though.

The word owned can be percieved in many ways.......

Frankly myself and quite a few long term seasoned investors....are so surprised lack of due diligence of some on the forum. There is no substitute for due diligence.

A case in point recently was the number of investors who followed a well spruiker into mining towns. In some of the areas rents have come off 40-50%.....I am sure that a few will have no option but to go bankrupt.

To be a successful investor people need a good mix of Financial quotient as well as Emotional and Intelligent quotient. Unfortunately...some on this forum have blinded by irrational exhurburence. The property game has changed significantly......the uninformed are going to get cleaned out.

Unfortunately it called "hero workshipping", can sucker the best of them

 

[Aaron_C]

Hi Aaron, woul that be for stronger areas in syd (but difficult to get in say regional/smaller towns in qld)

Easier in metro areas but still possible for regional. Just don't go too remote like category 4.

 

[MTR]

Ps, 8-10% yields can still be found in west sydney, central coast, brisbane, gold coast and alike. If regional, i would expect to see much higher than the returns being thrown around on here.

Hi Nathan

Yep, I have just gone unconditional on a property Gold Coast, dual income rear property all council approved, which is rare, mortgagee sale, its a little ripper at 10% yield. I used a BA who is very creative, so I can not take any credit for this one.

I am amazed at some of the great deals on the Gold Coast, it has been hammered over the last couple of years. The property I purchased was listed for sale 2 years ago at $500K, picked it up for $360K, both properties solid brick structure, close to the city centre.

Cheers, MTR

 

[sanj]

NThere is no substitute for due diligence.

A case in point recently was the number of investors who followed a well spruiker into mining towns. In some of the areas rents have come off 40-50%.....I am sure that a few will have no option but to go bankrupt.

To be a successful investor people need a good mix of Financial quotient as well as Emotional and Intelligent quotient. Unfortunately...some on this forum have blinded by irrational exhurburence. The property game has changed significantly......the uninformed are going to get cleaned out.

Absolutely, i agree with this.