Tips For Finding That Perfect High Yield Property
Any property guru worth their salt will tell you that a dream property investment has nothing to do with a prestigious address or sleek amenities.
The ultimate goal, is to find that perfect “high yield” property that will give you maximum returns for as little input as possible.
Yield refers to the amount of cash a property produces as a percentage of its value and is calculated by the rental income you are receiving compared to the purchase price. There’s a lot more that goes into the calculations, which I’m happy to run you through, but to give you an idea on what to look for, I’ve put together some simple tips.
Do your research. There are plenty of stats out there that will give you the median rental yield for each suburb. This is a great place to start!
Look for dual income properties such as a house with a granny flat. You can potentially have two streams of rent coming in, meaning the chance for a higher rental yield significantly increases.
Have you thought about looking rurally? Country towns offer some great properties at a low price and because the cost of living is low, the rental yields tend to be higher.
Always think forward. Be on the lookout for up-and-coming areas and ask yourself if they’ll still be flourishing in five years time.
At the end of the day, you need to be realistic. Just because a property has a high yield doesn’t mean it’s going to be a great investment.
As a mortgage broker, I can talk you through your options for investment loans so you can see what your monthly outgoings might look like.
My Very Best To You Always,
