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 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
Episode 61: The ins and outs of strata: what buyers should consider
Episode 60: The pros of using a buyer's agent: why this investor brought someone in
Episode 59: How to invest in property as a team: two investors share their secrets
Episode 58: When do you stop investing? The SPI Show answers more listener questions
Episode 57: Wealth creation through property: trends and themes to think about in 2017
Episode 56: The SPI Show accountant reveals all: How to pick your financial team
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