followers view all
following view all
|tlh59101 is not in any groups|
|How to build High Growth, High Yield Residential Investment Property in Australian Major City Suburbs.
Developing and marketing same.
A Newbie Internet Marketer. Trying to make my first buck at this game. There seems to be more in it than meets the eye, or is it at 70yrs I'm just being left behind.
HOW TO OWN HIGH YIELD RESIDENTIAL HOUSES IN AUSTRALIAN CITY SUBURBS
Introducing the 7% way to building
a successful property portfolio
Investing in Property for Profit
The vast majority of people decide to invest into property to make money. However, statistically, it is highly likely that you may NOT make money.
Unfortunately, the statistics show that most people who get into property use strategies that loose them money! In fact around 70% of property investors lose money! There are some who break even, a few make a small income like $10 - $50 per week. Then there’s a small number who make real money.
Here are some statistics – only 17% of Australians are property investors, over 80% only own one investment property and in most cases, most are negatively geared. In the twelve months leading up to March 2010. 69.4% of landlords in Australia LOST money. In fact together, they lost a combined total of around $8.3billion.
I personally went through the pain of losing a property portfolio of 12 investment homes. My portfolio at the time consisted of luxury Melbourne waterfront homes to Brisbane duplexes. This was due to negative gearing and overnight being retrenched from a high salaried position and no defined exit strategy. Of course the market was not kind to me, and quick sales were not forthcoming so I finished up handing properties back to the banks.
I have learnt from my experience and have researched a strategy that within capital city suburbs, 100% financed and with no negative gearing, WILL put money into your pocket each and every week indexed for life through increases in rents.
Selecting the Investment Strategy that is best for you
If you fail to plan .... you plan to fail
Determine your strategy The question is not “what is the right strategy” but rather “what is the best strategy for you?” Do not start your property investing journey until you have determined the strategy that’s best for you.
Everyone who wants to be financially independent needs to plan how they are going to get there! Financial independence rarely happens by accident. Your plan needs to answer these three points.
· What you wish to achieve
· Why you wish to achieve it
· How you intend to achieve it
The what, why and how’s are paramount to your success
Is it that you can retire before 50yrs and travel the world?
Is it that you can provide a start in life for your children?
Is it that you can gift more to charitable causes?
The more you understand the “what” and the “why”, the more likely you are to reach goals and realise your dreams.
What are your dominant reasons?
HOW TO OWN HIGH YIELD RESIDENTIAL PROPERTY
OK, this is how it works:
I need you to clearly understand that to own investment real estate, is to own a small business. It’s all about profitability, which in this industry is the percentage game.
Here’s what tends to happen within new residential estates, in any given suburb, in any major Australian City. Capital appreciation or growth as we often say is like the rising tide.
For instance if you purchased a 4 bedroom house on a 400m2 block valued at $450,000, with long term growth of 10% in 7yrs your property will double in value to $900,000.
Again similarly if you purchased a Dual Income house on a 400m2 block valued at $500,000, with long term growth of 10% in 7yrs your property will double in value to $1,000,000.
Again similarly if your neighbour purchased a Dual Income house on a 600m2 property valued at $600,000 with long term growth of 10%, in 7yrs their property will double in value to $1,200,000.
Note: All options show the same percentage of appreciation or growth on the value of the property. Neither one is better!
NOW LET’S START OUR SURVEY
Firstly survey your chosen city suburbs for the following:
a Research for the 5 – 10yr Long Term Trend Growth estimates. www.domain.com.au/suburbprofile.aspx?
Research current rental adds for newer properties within the chosen suburb for all of the following:
i) 4 bedroom home with DLUG www.realestate.com/rent
ii) 3 bedroom home with DLUG www.realestate.com/rent
iii) 2 bedrm Ass/unit with S/CPT www.realestate.com/rent
i) 400m2 approx sized blocks www.realestate.com/sale
ii) 600m2 approx sized blocks www.realestate.com/sale
AN EXAMPLE OF A VERY AVERAGE NORTH BRISBANE SUBURB OF KALLANGUR 26th June 2010
1. Average 4 Bedrm DLUG on 400m2 Land Kallangur $420,000
2. Average Dualock value on 400m2 Land Kallangur $480,000
2. Average 4 Bedrm DLUG on 600m2 Land Kallangur $520,000
3. Average Dualock value on 600m2 Land Kallangur $580,000
4. Long term growth estimates for Kallangur ..... 10.5%
5. Current rent 3 Bedroom house with DLUG .... $340.00/wk
6. Current rent 2 Bedroom unit with Carport .... $280.00/wk
7. Current rent 4 Bedroom house with DLUG ... $400.00/wk
Average Dualock on 400m2 Land Kallangur
Gross Yield equals: Rent/annum x 100 / Property cost = 6.71%
Average Dualock on 600m2 Land Kallangur
Gross Yield equals: Rent/annum x 100 / Property cost = 5.64%
Average 4 Bedrm House on 400m2 Land Kallangur
Gross Yield equals: Rent/annum x 100 / Property cost = 4.95%
Average 4 Bedrm House on 600m2 Land Kallangur
Gross Yield equals: Rent/annum x 100 / Property cost = 4.16%
I hope you now see how effective Dual Income Homes can be to increasing your yield within your property portfolio. As a rule of thumb yields of around 7% + will likely place you into cash flow positive territory. This will allow two things to happen.
1. For you to sleep comfortably, with the knowledge of long term growth and income which is indexed for life due to imminent rental increases.
2. It maintains your loan serviceability levels enabling you the ability to move forward with further property purchases and Bank Loans.
Trust this short report is one of those Ah Ha moments for you!!!!
Cheers and happy investing,
|share||like 48||report||495 views|