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  1. #1
    Join Date
    Mar 2015
    Location
    Brisbane Wellington Auckland
    Posts
    937

    Default What yield are you buying at ?

    For units in Wellington what Net Yield are you buying at
    Net Yield is calculated as below
    Rent x 52
    Less
    Rates
    Insurance
    Management 9% of gross rental
    Repairs and maintenance
    Vacancy 2 weeks

    Is net rental then divide by purchase price

  2. #2
    Join Date
    Oct 2013
    Posts
    1,728

    Default

    Quote Originally Posted by Beano View Post
    For units in Wellington what Net Yield are you buying at
    Net Yield is calculated as below
    Rent x 52
    Less
    Rates
    Insurance
    Management 9% of gross rental
    Repairs and maintenance
    Vacancy 2 weeks

    Is net rental then divide by purchase price
    Not buying in Wellington at the moment, but just improving your formula a little:
    Just do Rent x 50; it's simpler math, automatically accounts for your 2 week vacancy, and stops you overestimating Management Fees, which of course aren't paid when the unit is vacant
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  3. #3
    Join Date
    Sep 2007
    Location
    Auckland
    Posts
    8,457

    Default

    Do you mean residential units? Or commercial?

    Do you think now is a good time to buy?
    Squadly dinky do!

  4. #4
    Join Date
    Mar 2015
    Location
    Brisbane Wellington Auckland
    Posts
    937

    Default

    Quote Originally Posted by Davo36 View Post
    Do you mean residential units? Or commercial?

    Do you think now is a good time to buy?
    Residental ...not certain if it is a good time to buy or sell really need to look at the yields.
    With so much money splashed around by the government
    Properties seem to be holding their value.

  5. #5
    Join Date
    Apr 2004
    Posts
    837

    Default

    Quote Originally Posted by Beano View Post
    Residental ...not certain if it is a good time to buy or sell really need to look at the yields.
    With so much money splashed around by the government
    Properties seem to be holding their value.
    think it would be pure madness to buy anything but a roof over ones head at present... till we can see the longer term affects of COVID on NZ commercial properties how many businesses will go bankrupt 2H20 ... you can't force people to spend to go into many retail shops once the lockdown is over (whenever that could be??) manny kiwis
    will be just doing there best to keep food and a roof over their heads for sometime .. Luxury items the worse affected ..+ tourism....

  6. #6
    Join Date
    Jan 2014
    Posts
    1,046

    Default

    Quote Originally Posted by JBM View Post
    think it would be pure madness to buy anything but a roof over ones head at present... till we can see the longer term affects of COVID on NZ commercial properties how many businesses will go bankrupt 2H20 ... you can't force people to spend to go into many retail shops once the lockdown is over (whenever that could be??) manny kiwis
    will be just doing there best to keep food and a roof over their heads for sometime .. Luxury items the worse affected ..+ tourism....
    There is a flip side also and one I don't quite understand, i work in sales in the Grocery trade, PNS, NW & countdowns and what was going on there in the past few weeks makes xmas sales look like a trip to the dairy to buy lolly pops! The amount of spending that went on was just crazy. What I want to know is where did all those people out buying toilet rolls, hand sanitiser and household cleaners get all of their money from, would they have not been wiser to save their money for a rainy day!! Especially now as they don't even know if they have a job to go back to.
    "Remember, people will judge you by your actions,not your intentions.You may have a heart of gold -but so does a hard-boiled egg".

  7. #7
    Join Date
    Apr 2004
    Posts
    837

    Default

    Quote Originally Posted by Frezzinghot View Post
    There is a flip side also and one I don't quite understand, i work in sales in the Grocery trade, PNS, NW & countdowns and what was going on there in the past few weeks makes xmas sales look like a trip to the dairy to buy lolly pops! The amount of spending that went on was just crazy. What I want to know is where did all those people out buying toilet rolls, hand sanitiser and household cleaners get all of their money from, would they have not been wiser to save their money for a rainy day!! Especially now as they don't even know if they have a job to go back to.
    Yes FEAR does drive the crowds to madness, the supermarkets not doing as many deals on the products and if anything upping prices on many products ...and with all the cash payouts any businesses open will do very well ..My only commercial property PGG Wrightsons is open .. so shouldn't have any issues with rent being paid...But I'm sure many won't be ....heard of a billionare over in Aussie just stopped paying rent and laid off all his thousands of workers
    Last edited by JBM; 27-03-2020 at 07:59 PM.

  8. #8
    Join Date
    Mar 2015
    Location
    Brisbane Wellington Auckland
    Posts
    937

    Default

    Quote Originally Posted by JBM View Post
    Yes FEAR does drive the crowds to madness, the supermarkets not doing as many deals on the products and if anything upping prices on many products ...and with all the cash payouts any businesses open will do very well ..My only commercial property PGG Wrightsons is open .. so shouldn't have any issues with rent being paid...But I'm sure many won't be ....heard of a billionare over in Aussie just stopped paying rent and laid off all his thousands of workers
    https://www.smh.com.au/business/comp...26-p54e7t.html

  9. #9
    Join Date
    Apr 2004
    Posts
    837

    Default

    Yes thats the one Beano I hope your not having issues with your tenants .. I'm sure many across the entire property sector will be stressed and defaulting on Morg payments if this plays out much longer >>


 

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