But real estate agents reckon 5% is a fabulous yield....Don't kid yourself though, 5.2% rental yield is not even close to cash flow positive when you consider all the holding costs (property management, maintenance, rates, body corp, etc).
Follow along with the video below to see how to install our site as a web app on your home screen.
Note: This feature may not be available in some browsers.
But real estate agents reckon 5% is a fabulous yield....Don't kid yourself though, 5.2% rental yield is not even close to cash flow positive when you consider all the holding costs (property management, maintenance, rates, body corp, etc).
Thanks for sharing. I'll be sure to look at growth drivers alongside CG and not just the hard numbersYou want to make sure that besides having a strong yield, the CG prospects are there to keep up/exceed inflation.
Key things I look for are:
- Positive demographic changes - slummy areas becoming nicer over time.
- Higher than avg. population growth - creates more demand and higher prices.
- Private and govt investment infrastructure and development.
- Development potential/renovation potential is desirable.
Thanks for sharing. I'll be sure to look at growth drivers alongside CG and not just the hard numbers
Similar 4-bedders to this place rent for $350 to $400 per week, so this is +cf right from day 1.
http://www.realestate.com.au/property-house-nsw-goulburn-115354171
The property below just sold for $172,000 (yes, above the asking price) and although needs some work, will rent for around $300 per week. If you can renovate to budget this will be a good deal and could probably be flipped for a profit.
http://www.realestate.com.au/property-house-nsw-goulburn-115905751
If you are serious about making money in IP, get interested in reno and development. You can see why: 4 bedroom places get (roughly) $400 per week, which is $50 to $100 a week more than 3 bedders get which is (roughly) $300 a week. 2 bedroom places only get $200 to $250 per week -- I don't look at 2 bedders other than to see whether there is development opportunity. Adding another bedroom to a house GREATLY increases its value and rental return, as long as another room (like lounge) hasn't been sacrificed in the process.
Are you from Goulburn? Those rental figures seem very optimistic...
Anyway That 4bed/1bath on Hume street is definitely a lower class area (lots of ex-govvies etc).
does anyone find by allowing pets -inside and outside the house increase rents and stay of tennants?
What about big pets?
...If you say no pets, they'll have them anyway but just take them for a walk/keep them at a relatives during the open...