Searching for high rental yield properties is not usually a simple process but a new website is making searching easier for investors by weeding out the low yield properties.
Consider there are thousands upon thousands of properties for sale in Australia, and the majority of them don't have attractive yields - essentially the bottom line from the rental income doesn't bring in enough to profit after interest payments, management fees and taxes. How does one know which ones have the best yields?
One way is to search through all the properties on sites such as domain.com.au or realestate.com.au, then call the property managers to confirm the rental prices and management fees, then calculate the yields on your own. It's not surprising there's recently been an attempt to make that process easier.
In March, former real estate agent Kevin Watson launched his site, www.investmenthomesaustralia.com.au. Visitors are shown such information as gross return, fees, and whether the property is tenanted currently. Searches can be done based on price and location.
"Investors just want numbers," says Wilson. "I'm doing your homework for you."
The site itself runs smoothly, with Queensland properties abundant and other states coming soon.
Wilson says he's building up the database from scratch, and in the first two days of it opening there were 75 listings, with the majority in Queensland.
For someone not as focused on a particular area, there are some great yields to be found, including some over 6%. While some statistics might tell you about a certain suburb where you might get these types of yields, the Investment Homes Australia site gives you concrete properties that are for sale now.
There's also a nifty feature when you click on a particular property that shows "IHA Return," which essential subtracts the management fee from the annual rent income to show you a likely bottom line.
A gross yield property in Bellmere in Queensland has a listed gross yield of 5.04%, but when you add in the management fee, the yield is 4.63%.
Aside from the stats, each listing has plenty of pictures and other details as well.
Watson says one agent posted six properties and had three enquiries waiting for him the following day, so there has been some early success.
It's the quality, not quantity that makes the site unique after all. Watson says any gross rental return below 4.5% won't make the cut.
"It's an exclusive club, not everyone can play," he says.
If the site expands its listings, as Watson plans, it will become one of the best tools out there for investor searches based on rental yields.
To see this great site in action, CLICK HERE!
The above information is supplied by www.investmenthomesaustralia.com.au.
Disclaimer: while due care is taken, the viewpoints expressed by sponsors do not necessarily reflect the opinions of Your Investment Property.
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