hi, i had just finished reading ‘From 0 to 130 properties
in 3.5 years’. However, the property market has come a long
way since the book was written and find it is almost near
impossible to have properties that generate more than
10% in rent.Anyone there can share on this?
the seeker
It is for the most part outdated but it is still possible to find 10%+ yields, just broaden your search. Remember to look at just the numbers and not with your emotions. I think there was a revised version in his second book but can't remember what it was. Have you heard of Nathan Birch? He's still regularly finding properties with fantastic returns.
Properties on the more affordable end of the scale (think Orange) and mining towns are the two types that come to mind and seem to be generating this kind of return at the moment. Check the back of YIP and API for Gross Yield Return as indicators or for back issues that suggest areas where these returns are possible.
By doing a simple reno you can easily increase the yield by a few percent so keep that in mind too.
Here's a few links from others asking a similar question;
https://www.propertyinvesting.com/forums/property-investing/help-needed/4335945
https://www.propertyinvesting.com/forums/property-investing/help-needed/4323727
https://www.propertyinvesting.com/forums/treasure-chest-past-forums/the-treasure-chest/665
As another member posted-
"The 11 sec rule is just a yard stick (as Steve puts it) … It was never designed as the be all end all of property procurement tools.
There are still many deals out there that work well within the 11 second rule but some need more creative solutions to get them cashflowing.. such as wraps, lease options, upgrades to justify rental increases and many more.
Trick is to try to find a hidden solution to bring the yield up so that you are not out of pocket … if it not by increasing the rent .. then it could be through lowering costs to get you over the line."
Thanks for all the sharing. I do keep track on the mining town
market. However, i am more reserved on them as they may
represent transient need and not medium or long term demand.Sure, i do understand its a quick and off the thumb filtering tool.
I believe population growth would be a more reliable yardstick
for long term investment.
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