re: property - to all
Sydney is not Australia, how very true is that statement. I suppose clarification is required when talking about property as to which city one is talking about. When I post my views it is on the Melbourne market because that is the one I know best. Other states may lead or lag but I don't care about them, it is the rediculous prices in Melbourne that are worrysome.
A $300 per week rental return for a $300k property (5.2% yield)? Not a chance.
A 6.5% yield at an interest rate of 6.5%? Not a chance.
These figures may well apply in other states but definitely not here in Melbourne, you'll be lucky to get a 4% yield and I mean lucky.
As I posted yesterday, rents must increase by 50% to achieve a 6% yield. How many years will it take for this to happen.
Not much point in having capital appreciation when a chunk of that exits through the back door via costs to service the property.
