Hi all,
For those who are still looking for properties in regional towns of Australia, I am curious to know what gross return people are satisfied with.
The 11 second solution is long gone (except in ghost towns), so at what gross returns will you still buy?
I ask this as we are considering selling a couple of properties.
Any thoughts would be appreciated.
Regards,
Del [trigger]
Del [smiling]
I wrote this elsewhere, but my acceptability rate would be:
6% in city
8% in regional
10% in country
Of course, I’d like to say I only accept a 40% yield- hehe- but that would be lying
So if it’s regional, my level is 8%.
Hope that helps. As you might know, I’m pretty conservative investment-wise, and don’t expect the sun and the moon when I buy an IP.
Hope you sell well, Del
)kay henry
Hi del
i’m selling my properties, ones that are only returning 8% are getting dumped. Obviously when i bought them they were returning better than 8%. But the way i see it is i wouldn’t be buying them with only 8% return so should i hold on to them ? no i say. So i’ll take the money and reinvest elsewhere , somewhere where i can get capital growth and cash flow. I know a lot of people say never sell, but if you sell and reinvest in a better deal isn’t that a smarter thing to do ?
all the best with your decision.
regards westan
Hi Kay & Westan,
Thanks for the replies.
Yes Westan, I think it is good to sell if you can do better elsewhere.
Good luck to all,
Del[trigger]
1. For a mining city (pop >20000): 9-10% (on a post 1985 IP for building depreciation benefits)
2. For a regional coastal city (pop >20 000): 8% (pre-85 building acceptable if well-located)
3. Capital city: 7-8%
4. Small country town: 10%+++
Note that I haven’t purchased in 3 & 4 and won’t do so unless yields are right and/or it’s undervalued and/or has potential.
Regards, Peter
I don’t ever buy based solely on returns – it’s a factor in my decision making process, but not a big factor. It depends on growth prospects and a myriad of other things so I don’t have a cut-off point I won’t go below.
For instance was looking at a group of properties that were returning about 3-4% which didn’t bother me as the potential was unlimited – best area possible to buy in at prices that were okay. Shame it hasn’t worked out so far.
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