All Topics / Help Needed! / Good Rental Yield in Melbourne

Viewing 6 posts - 1 through 6 (of 6 total)
  • Profile photo of raviravi
    Participant
    @ravi
    Join Date: 2006
    Post Count: 8
    April 22, 2013 - 1:28 pm

    Hi guy,

    I am looking a starting a rental property portfolio that will allow me to supplement my income. I am not focused on quick capital gain but steady capital appreciation would be idea. I am hopeful a good strategy will allow me in about 10 years time to start to pull back from the hours I am currently having to put at work.

    I am also looking at reducing some of the tax burden by using depreciation. 

    I am sure there are a lot questions I need to me asking for the the time being. So any guidance would be most appreciated.

    What suburbs do people prefer in Melbourne to give solid rental yields? My current work commitments mean I am not able to invest too much time doing renos or work on property. So prefer something that is low maintenance.  What sort of property tend to give the most depreciation potential?

    Profile photo of EmilEmil
    Member
    @emil
    Join Date: 2012
    Post Count: 26
    May 2, 2013 - 1:30 pm

    According to RP Data, Melbourne’s median gross rental yield during the first quarter of 2013 was:

    – 3.6% for houses

    – 4.4% for units

    Yields are expected to increase from now on, as auction results on the property market in Melbourne show weekly growth.

    Cheers,

    Emil

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539
    May 2, 2013 - 2:24 pm

    The suburbs of Melbourne offering good rental yields are the non-Melbourne-suburbs wink

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
    Email Me | Phone Me

    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    May 2, 2013 - 11:40 pm

    Agree with Jac M – if solid rental yields are part of the game plan for you then perhaps Melbourne is not the best place to be looking.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of oc1oc1
    Participant
    @oc1
    Join Date: 2012
    Post Count: 148
    May 3, 2013 - 8:00 am

    Hi Ravi,

    Have you considered developing? You can outsource many steps of the process.

    In terms of rental yield, if done properly, you will get a higher yield as your cost of each dwelling will be less than buying it outright. Also no stamp duty.

    Food for thought.

    Oscar

    Profile photo of raviravi
    Participant
    @ravi
    Join Date: 2006
    Post Count: 8
    May 3, 2013 - 10:57 am

    Thanks for your replies.

    So what strategies are people using in Melbourne in terms of investment. Seems rental yields don’t even cover for interest. Property prices seems to have plateaued off or even if it did increase surely it won’t be anything like it used to be.

    Thanks for that idea oc, I havn’t really thought of that but something I will start to do some research on. Any pointers as to what I should start looking at in terms of areas what sort of land size etc.

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

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