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Make your property investment a success – start by getting the strategy right

PERSONAL KNOWLEDGE AND INVOLVEMENT One of the advantages of direct property investment over shares (or property funds – which we will cover in a separate article soon) is that small investors can apply their own knowledge and involvement to make their investment more successful. Knowledge of the local area (or of a regional or tourism area), experience dealing with strata bodies and councils and of renovating properties, can all make a big difference.

Thinking of investing in property?

RENTAL YIELDS Rental yield is the annual rent from a property expressed as a percentage of its value. So if a property costing $400,000 to buy earns $385 per week rent, that’s $20,000 per year or 5% of the investment: a 5% gross yield. That gross bit is important because these figures don’t take into account ongoing costs. Yields vary greatly from place to place and property to property, but generally speaking, metropolitan residential property typically yields around 4% to 6% (gross).