what return is a good return

Hi all,

What percentage return would you think is a good return on say $200,000.00 in your state CBD and rural areas? For NSW, I would say 5% for CBD and 10/12% for rural. What do you think? This should be an interesting post.

here to help

GR

Do you mean a rental yield?

The best I have found recently is a 2x2 duplex which yields a 'fantastic' (as per ad) yield of 5%. The price was 279,000. As of this morning it was shown as under contract.

Personally, most houses I look at seem to be yielding about 3 %. I'm not sure what long term yields are (don't know where to find the stats) but I thought a unit should be around 9% and a detached house about 7%. To me this indicates the level of overpricing in the market - either the rents have to go up or the prices have to come down.

_____________________________
We all need somewhere to live - but do we all need a CBD apartment?

How do you work out the rental yeild? Is it rent/purchase price of property? Should you take into account the full cost of property including stamp duty etc?

Originally posted by grossrealisation:

hi all
what % return would you think is a good return on say 200,000.00 in say your state cbd and rural give me a cbd and b rural.
nsw I would say 5% A and B 10/12% let me here the states.
this should be a interesting post

here to help

I can get 5.5% or so with an on-line account Grossrealisation?

What "context" are you talking about regarding the investment, can you give more information..

Are you looking at returns for investors that pool their money in a development; If so what would be a hypothetical deal..or are you thinking of something else..??

are you talking buy and hold, build and sell..etc etc..?

Just trying to get some more information on what you are getting at..

REDWING

"Money is a currency, like electricity and it requires momentum to make it Effective"
Count The Currency With This Online Positive Cashflow Calculator

Hi Grossrealisation,

This is a bit of a confusing exercise. Have to be carefull that you are comparing apples with apples.

In Invercargill we a looking at deals with yields up to 11%.

There are higher yields but I personally would not touch this end of the market.

But we are also looking at deals with rental yields around 6% which serve a completely different purpose.

As the others have said bank online accounts are doing wonderfull things for a short term yield but I have not heard of anyone making their fortune this way!

Cheers

donandliz@xtra.co.nz
NZ Investors & Property Spotters
Renovations & Project Management

hi all
I am trying to get a return on investment for the different areas including all cost.
sorry redwing I don't use on line accounts but get your drift.
This is buy and hold and what area you have in region that has a return above 5%.
I thought this post had died but it has been reborne

here to help

I consistently get returns of 8.5% by buying, renovating, holding, renting it out and refinancing in large provincial cities.
I borrow at about 7% on low doc loans, interest only, 20% ingoing and by refinancing after renovating I can get back out about half of what I put in. A year or two later I refinance again and so get all my invested dollars back. Its such a great feeling to have an investment property making money and wealth for you, that owes you nothing financially.
Each property has to have a twist. Either excellent position, home with seperate granny flat, 4 or 5 bedrooms, maybe ensuite and walk in robe, corner block, outdoor living area etc. It also must be 600M2 or more with a 20M frontage, so in the future it may be a duplex site that I can develop.
Hope this helps some of the newies.

Where on earth do you find properties with are cashflow postive nowadays. I've been scanning alot of regional areas and am struggling!
10 to 12% for regional areas - where do you find that??

i reckon especially if u have taken out a loan to pay for the property, and u want it to have a pos cash flow, u would need a return of more than the interest rate that u r paying. wat do ppl think?