http://www.heraldsun.news.com.au/common/story_page/0,5478,9890691%255E462,00.html
I thought the bit about median rents for syd and bris were interesting. Sydney is $290 a week for a 1-bedder, brissy is $200 a week for a 1-bedder. That is such a vastly different yield! I know the price of brisbane properties are cheaper than in sydney… but still, that $$ amount sucks. Give me sydney rents anyday… and sydney and bris IP prices can be similar in many equivalent areas.
Also, some interesting stuff about rental yields at Docklands. Rent for 380-390 for a 2-bedder (still quite a bit of money!) but owners expecting $500 a week!
kay henry
Kay,
I think it all comes down to cash flow. When you’ve borrowed 90% of the purchase price of a property (as most investors will if they can) then the percentage of the loan repayment covered by the rent is pretty important. With interest rates at 7% and rental income in Sydney running at 4% that’s a 3% loss you’ve got to cover (1.5% on a good tax break – after the tax return, if you can live survive that long).
I’d rather cover 0% loss from day 1 if I could (but then I have an expensive lifestyle to maintain). In that case I’m thinking Brisie comes closer.Brisie also looks good when it comes to state taxes – land tax, exit tax, stamp duty etc.
Scary.
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