Join The Conversation. Free Membership. Click Here!
Viewing 6 posts - 1 through 6 (of 6 total)
  • Avatar of AntheaPropertyAntheaProperty
    Participant
    @AntheaProperty
    Post count: 17

    So what is considered to be a good ROI (return on investment) on houses? Please don't quote me anything to do with negative gearing. At the end of the day what sort of return is the average investor after?

    Avatar of Scott No MatesScott No Mates
    Participant
    @Scott-No-Mates
    Post count: 3,784

    It can vary widely, how do you classify ROI – is it simply gross rent, gross rent + 'percieved' capital growth, realised capital gain, net rental return, net capital gain etc with another hundred variables thrown in eg before or after tax, trust/company/syndicate etc.

    Avatar of AntheaPropertyAntheaProperty
    Participant
    @AntheaProperty
    Post count: 17

    Thanks. I have researched web sites that talk about positive geared properties and they have properties listed quoting  yields of between 6% and 10% returns p.a. I did my calculations and they are gross yeild on purchase price (contract price) and nothing to do with percieved capital growth and assuming before tax that I can see. There are more than one web site quoting ROI this way.

    Avatar of Richard TaylorRichard Taylor
    Participant
    @Qlds007
    Post count: 11,105

    Most long term investors dont negative gear.

    i dont own a single property that isnt considerably positively geared.

    Cheers

    Yours in Finance

    Richard Taylor | Taylored Financial Solutions I Mortgage Broker
    http://www.tayloredfinancialsolutions.com.au
    Email Me | Phone Me

    Earn 1.75% - 2% per month on your money. Join one of our Investment Trusts now. Email for details

    Avatar of timinchinatiminchina
    Member
    @timinchina
    Post count: 3

    Duncan Bannatyne, a seasoned multi-millionaire investor in the United Kingdom (but with international interests) says that he looks for a minimum 20% return on investment. Returns like this can be achieved in any of the major investing classes: real estate, shares and trading businesses, but the higher the return, generally the higher the risk. Cash and bonds don’t offer great returns and are mainly useful as part of a more diverse portfolio (or as the most liquid asset for easy transfer to another investment class).
    Personally, I’m looking for properties that (with some work) will give me positive cashflow returns from a minimum deposit. The almost inevitable capital gains are a bonus, but I’m not currently paying a huge amount of attention to the capital gains as I assume these will be almost universal for property (unless in a town that could disappear in the next few decades…)

    My two cents…

    Tim

    Avatar of AntheaPropertyAntheaProperty
    Participant
    @AntheaProperty
    Post count: 17

    Thanks Tim. Just a point of clarification please. Is the 20% a return on the cash one invests ie. in property the deposit that is put up or a return on the purchase price considering most people borrow? You do say an invetment that  will give me positive cashflow returns from a minimum deposit. So it seems that one should be looking at a return on your money you have tied up in the deal and not the cost of the deal?
    Clarification.

Viewing 6 posts - 1 through 6 (of 6 total)

You must be logged in to reply to this topic.