High Yield Investment Properties

High Yield Investment Property Opportunities and Considerations

Hello does your interest lie in SDA / SIL and or high yield investment properties, if yes,please accept our latest news updates :

Why astute Investors include High Yield Investment Properties in their portfolio

• To achieve a Cash Flow Positive Investment Property that funds itself
• Banks lend against Equity for your deposit, but borrowing capacity is determined by your Income
• Investors with higher income can borrow sooner for their next investment property
• Being cash flow positive allows you to pay down your own home loan that much quicker, saving you thousands and thousands of $’s in interest being charged
• If you have no other personal debt, being cash flow positive allows you to either pay down this new investment quicker or borrow to secure your next investment property
• Higher yield equates to giving you financial choices in life, reinvesting this higher income into another investment accelerates your own financial planning goals pushing you that much closer to your outcomes that much sooner
• NB : most investors chasing Capital Growth are comfortable achieving 5% – 7% pa in a normal market.
  • Being Cash Flow positive, not only are you achieving capital appreciation, but if you reinvest the extra income into another investment, you further accelerate your investment strategy, far outpacing even a 10% capital growth … ask us how?

Why SMSF astute Investors include High Yield Investment Properties in their portfolio

• To achieve a Cash Flow Positive Investment Property that funds itself in the SMSF
• A SMSF can only deduct expenses up to 15% tax rate – meaning the need for higher income over deductions
• A SMSF with positive cash flow income can pay down the loan sooner, resulting in more equity but more importantly a higher income at the time of retirement
• And other advantages as per above …

I am sure you get the drift as to why investors are now leaning towards Positive Income Properties. It is our honor to explain further when we catch up. Click above or below to connect.

high yield investment property Australia wide

Introduction

The property investment landscape is vast and varied, offering numerous opportunities for those seeking to grow their wealth. Among the notable options are NDIS (National Disability Insurance Scheme) SDA properties, SIL Homes and high yield investment properties such as CoLiving, Group Homes or Share Houses.

These avenues present distinct advantages and considerations, catering to different investor goals and risk appetites. This document explores both NDIS properties and high yield investment properties, providing a comprehensive understanding to aid potential investors in making informed decisions.

NDIS Properties

Advantages of Investing in NDIS Properties

• Stable Income: NDIS properties typically come with long-term leases, often ranging from five to ten years, ensuring a stable and predictable income stream for investors. Location and Floor plan IMPERATIVE.
• Government Backing: As these properties are funded by the Australian government, they offer a level of security and reliability that is attractive to many investors.
• High Demand: There is a significant demand for NDIS properties in particular locations, due to the growing number of individuals requiring specialised housing solutions.
• Social Impact: Investing in NDIS properties allows investors to contribute positively to the community by providing essential housing for those in need.

Considerations when Investing in SDA Properties

• Specialised Market: NDIS SDA properties cater to a niche market, and investors must understand the specific requirements and regulations associated with these properties.
• Higher Initial Costs: The construction and customization of NDIS SDA properties can be more expensive than traditional investments, reflecting the specialised features and generous floor plan sizes needed.
• Management Complexity: Managing NDIS SDA properties may require more involvement and expertise, especially in ensuring compliance with relevant standards and regulations.
• Location : Which locations to avoid and which locations have low supply and demand.

High Yield Investment Properties

What are High Yield Investment Properties?

High yield investment properties are real estate investments that generate a higher rental income relative to the property’s value. These properties are typically located in areas with strong rental demand, in locations where tenants want to share / or don’t want to live alone / or cannot afford to live alone, but may not always be in prime or high-growth locations. The focus is on maximizing rental returns rather than capital appreciation.

Types of High Yield Properties

• Dual Key: banks do tend to undervalue a dual key, they are more difficult to sell but upside is can yield around 6% pa.
• Duplex : require larger block of land, hence a higher entry into the market. Excellent investment vehicles as can keep both sides, sell one side or sell either side separately. Yields around 5%.
• CoLiving : built on generous floor plans in locations with growth potential and a strong demand for shared accommodations. Each tenant has their own separate lease agreement. Usually well appointed and thus there is buyer demand for them. Yields around 6%. Read more here
• Group Home or Share House* : Due to size of floor plans, these homes require larger blocks of land. Strong and growing demand for share houses. Usually built with 5 or so ‘separate’ units each having own kitchen, living area, bedroom, toilet etc. Yields around 10% or so. Read more here and here
• SDA Property (NDIS) : absolutely location specific driven. When built on a generous floor plan could attract participants sooner. Yields 12% to 18% read more here
• SIL Homes : significant demand for SIL homes to cater for people with disability who do not qualify for SDA homes. Very low supply, being such a new product. Yields around 7% read more here

*  we can purpose build a Group Home on an Improved Liveability floor plan for the purposes of you potentially attracting SDA Participants for a higher yield and or SIL participants and or Residential Property tenants. Thus substantially extending your yield potential.

Advantages of Investing in High Yield Properties

• Cash Flow: The increased rental income can result in positive cash flow, providing investors with regular income and the ability to reinvest or cover expenses. Another major benefit being banks will lend sooner for your next investment when you achieve higher rental income. Thus you can build a portfolio that much quicker.
• Higher Rental Income: These properties provide a higher rental yield, offering investors a greater return on their investment compared to lower-yield properties.
• Diversification: High yield properties can diversify an investment portfolio, reducing risk by spreading investments across different property types and locations.

Locations

Locations for both SDA Property and Shared Accommodation properties

At properT network out focus is Australia wide. We prefer to match your budget, purpose for the investment, your yield you are after etc, to a suited location. These locations also have to display an acceptable level of demand to mitigate the potential risk.

Current Stock for SDA and SIL Homes

Selected Pockets of Queensland, South Australia, Perth, NSW and Melbourne.

Land across Australia is difficult to come by, and land to suit high yield investment properties even more of a challenge to source. Meaning “First in, best dressed”. These always get snapped up very quickly. Register your interest clicking here or better still call me now on 0413 108 125.

We do have availability in Vic, SA, QLD, NT etc. with budgets just under $1m up to $1.3m for locations with strong demand and very low supply. Ask us what and where …

YOUR HELP PLEASE :  who do you know that is also talking about investing in property? Please forward them my email if you find it pertinent and cc me in on the forward. Thanking you in advance.

Warm regards

Stephen