Onthehouse values this $1200 a week property at about 1.2 million. So about 5% gross yield. Net probably under 4. Can anyone explain why this is a good investment right now when you can get a risk free 6% from a bank?
If the house was worth 600k it would still be more risky than a bank account, but at least you'd be receiving about 8% net yield, a massive 2% premium over the interest bearing bank account. At 1.2 million, it only makes sense to those living in the past IMO.
