Property plusParticipant@lukecrawfordJoin Date: 2012Post Count: 13
As a general rule of thumb, what is an indicative rental yield that will cover all expenses including rates, interest and other costs that would then allow for a positive cash flow property?
Your help is much appreciated.
Cheersoc1Participant@oc1Join Date: 2012Post Count: 148
50% above your interest rate is a good start.
Oscarjfk_oMember@jfk_oJoin Date: 2013Post Count: 11
Here's an oldie, the price divided by 1000. When I was young I was told "Never pay more than 1000 times the rent they are getting".
Get all over this:Richard TaylorParticipant@qlds007Join Date: 2003Post Count: 11,992
Going to depend on a number of factors including how much are you borrowing.
Assume it is say 110% of the purchase price it is very unlikely in the current climate you will find a stand alone property that will return a yield that will cover all of your expenses.
We say to our clients that we try and get as close as possible and then look to use alternative strategies such as Vendor Finance to balance the returns on properties they hold for the long term in their portfolio.
Yours in Finance
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