podcast

Can you have high rental yields in low-risk areas?

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David Brewster, Managing director, Buy Property Direct

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A high rental yield in a low risk area, it's kind of like trying to buy a fast car with great fuel economy. That's very rarely found. When I look for investments I look for something that's balanced. A good ten year growth history, a reasonable return - 7 to 10% growth - and a return 4 to 5%. Usually if you follow this model, around $400 000 in the Melbourne market, you'll get a good investment that'll grow. You've got stability and comfort but it's easy to cash flow.

Listen to other instalments of The Smart Property Investment Show:
Episode 71: How this investor complements each property and balances his portfolio
Episode 70: Special episode: buyer’s agent answers more listener questions
Episode 69: Are you a ‘lazy’ investor? Consider the benefits to working with a financial team
Episode 68: Special episode: audience discussion live from the Property Buyer Expo
Episode 67: Don’t get ‘caught up in the now’: an expert reveals his tips for success
Episode 66: Wealth distribution: how should you manage your money?
Episode 65: Real estate agents: what separates the good from the bad?
Episode 64: How this investor learned from a property blunder
Episode 63: Q&A session: the SPI team answers your questions
Episode 62: Property procrastination: the importance of finding help
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