Ideal yield?
Question from D updated on 5th March 2014:
Any idea what an acceptable yield is for a high-quality property that is immaculately presented with all fundamentals completed (exterior painted, re-pield, plumbed, wired, new roof, new landscaping, new kitchen, new bathroom, fully modernized) in a growing, highly-desirable rental area of Wellington?
Our expert Kris Pedersen responded:
Hi there, this is a hard question as different investors have different ideas on what a good yield is. I'd need to know an actual address to answer as the yields will normally be different if it is a $500,000 property, a $1 million property or a $2 million property in the same suburb. Also remember to work off ideally a net yield rather than a gross yield. Regards, Kris Pedersen
Kris Pedersen of Kris Pedersen Mortgages is a commentator on property and finance. His team sources top finance strategies. www.krispedersen.co.nz
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