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

By Reporter 04 August 2014 | 1 minute read

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.



Risk is defined as the possibility of an investment having a different outcome from its expected gains or returns.

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