在澳大利亚 The pool at of an IP needs to be resurfaced (or so the pool doctor says), the cost was estimated to be $10K ($10,000), after recoverying from my impresssion of a cat coughing up a fur ball, it just seems far too much. Its just a standard poo I need some advice regarding a property purchase. Property - semi-detached house Bedrooms - 2 Condition - average needs internal reno to modernise Street - one of the best in suburb Location - excellent Close to schools - yes Transport - 50m
I just got an email from Residex that offered for $395 the following:
EXCELLENT CAPITAL GROWTH
A quarter of the suburbs are returning better than 13% annual growth.
40% are returning more than 10% annual growth.
66% are providing more than 7% annual growth.
85% are generating better than 5% annual growth.
HIGH RENT RETURNS
After such high capital growth, it might be expected that the rental yield for the Best Rent suburbs has fallen below the average, but the results show differently.
Australian houses - 4.1%
Australian units - 4.9%
Best Rent houses - 5.4%
Best Rent units - 5.8%
5% of suburbs are providing higher than 7% rental yield, while a quarter are providing at least 6%. Half are generating at least 5.5% and 80% are achieving 5% or more.
Now Im interested in the yield return as I want to purchase a property with high yields. Now I bought last months property investor magazine that had a similar report, but what I found out from posters here was that they didnt factor any of the excessive costs when printing the yield.
Now I dont want to spend $375 on a report that does the same thing. Is Residex reliable? Is it worth purchasing this report? Do they factor in ALL COSTS when calculating their yields?
Residex is probably offering a predictive report, predicting CG prospects over the next 5-8 years. Most of the magazines report past figures, not future ones.
Generally, yield is considered to be rent divided by price. Other expenses are not factored into this basic figure.
thanks tubs. in other words...not worth it
I never said that. Residex research is limited to purchase price and yield. You have to work out the other expenses for yourself. The Jan and Ian Somers PIA software is good for that.
Yield is simply that equation I said. Rent/Price. It's a good way of comparing different areas.
And because it does predictive growth it's more powerful than historical figures. How much faith you put in their figures is up to you. When I used it I found the report to be really helpful identifying areas to research further. Others think the figures are out of date.
But certainly not a waste of money.
DanielG said: ↑
thanks tubs. in other words...not worth itClick to expand...I think Residex is generally good value for money. Introduced me to some of the suburbs that I had no idea of. Infact I have bought two ips after reading the Residex best rent report. Now I keep a close tab on some of the other suburbs just when I am ready for a purchase. And yeah.... its predictive (forecasting the future) based on past growth history.
I would say you should pool in the purchase with other like minded investors and you wont feel the pinch....
Hi Daniel G,
Maybe try http://www.realestateinvesta.com.au also. It's a paid subscription and although not perfect is great to cut through every advertised property for sale and search out the good ones relative to median prices and yield for an area, development potential, distressed sales, vendor finance etc.
I reckon $395 is small change in researching a 395k spend.