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As soon as I saw the page in Steve’s book that said effectively the way to CF+ve earnings is to find properties yielding in excess of 10%, I thought, “OHHHHHH OK, that’s what I have been missing, the key to wealth generation is spotting non-existent undervalued asset opportunities”. I am a believer in efficient markets. Rental yields are at historical lows (hello, anyone hear of the property boom???), because interest rates are low and capital gains are taxed concessionally. Having done a quick scoot around the market even country properties sub $150k are yielding 6% max. So in answer to the question “where do you find such properties” I would answer – “you don’t – the yields have been traded down.” Steve’s book may have been relevant when he started writing it, but I doubt it’s relevance now. I wonder how many 10% yielding properties has HE bought in the last 12 months?
Sorry to sound like a cynic, but I am happy to be proven wrong. Anyone???
