Scott O'Neill

I'm just generalizing here.

If you go to sort of the, let's say Perth, it's quite similar numbers to Brisbane.

You might find the yields are slightly higher.

So you can get over anywhere from 5.5 to just over 7%.

Adelaide, interestingly, is a tight market now.

One of the main reasons for that is we have found that the stamp duty concessions, like you don't pay stamp duty in that market for commercial, has made a lot more investors go there.

So

Yields are probably about a percent lower for an equivalent purchase in Perth or Brisbane.

So you're sort of working off fours to six if you're lucky in that market, but most stuff's around five.

These are net returns.

This is after like outgoings as well.

So don't get this confused with a gross return in residential.

Like when an agent in residential quotes you a 5% gross return, it's really about a 3% net return.

or even lower, probably a 2% net return, because you've got to take your rates, your maintenance, your rental management, all that needs to come out of it.

These numbers I'm quoting are after those costs.

Tasmania, so you've got Launceston and Hobart, you're probably working off yields anywhere from 5% to even up to 8% in those markets, so higher, and those sort of numbers are kind of replicated across the major regional markets across Australia, so places like

Townsville, Rockhampton, Toowoomba, you know, Burnigo, Ballarat, they're a little bit tighter on the yield.

But long story short, there's a yield out there if you want it, but there's tighter yields in the capital cities.

Yes, Craig, this is one of the most common questions I get asked.

And it's really around what is the minimum amount?