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Here’s why we consider Brisbane rooming houses to be the best rental returns as well as investment opportunity
“Buying a rooming house in Brisbane might be an ideal choice for investors looking for a solid combination of capital growth and rental yield in an attractive area.”
Rising demand for rooming houses in Australia’s major cities has resulted in greater investment returns as investors and the Australian government strive to increase rental housing supply and accessibility. Considered the third major capital city in Australia, Brisbane has come out as one of the most powerful performers in the last several years. Brisbane noticed a record-breaking property boom in the two years following Covid-19, with property values increasing by more than 40%. Now that Brisbane’s population is growing, infrastructure is being improved, there aren’t enough houses for sale, and demand is rising, property prices have stabilized and begun to rise again. That’s why Brisbane rooming houses can provide the best rental returns in Australia. Most people invest in real estate to generate income and accumulate wealth over time. One of the most common ways to build wealth is to purchase rental homes. However, before buying rooming houses in Brisbane, knowing how to calculate ROI (return on investment) for a rental property is essential to ensure it’s a wise investment. In this article, we’ll discuss a what we consider to be the best rental yield, how to evaluate potential returns, and how the High Yield Property Club can help you achieve the best rental returns in Australia.What Is ROI for Rental Property?
ROI stands for return on investment, which in this context refers to how much your returns are from the investment you have made. It is critical for both investors and investment companies to understand how to assess and maximise revenues on rental properties.
That said, the ROI for a rental property is the ratio of your net revenue to the amount of money invested in the property. Your net income from a rental investment is the total rent money you receive each month minus any other expenses. Common expenses include rates, insurance, maintenance charges & water.
Furthermore, the amount you invest in a property includes the down payment, closing charges, and other purchasing expenses.
What is a Good Rental Property ROI?
Usually, what constitutes a good ROI for rental properties is determined by your goals and circumstances.
A decent ROI for rental property might vary depending on several factors. For example, you must consider the location, property type, market conditions in the area, and investment plans. Generally, a good ROI for rental property in Brisbane is around 3- 4 percent. However, High Yield Property Club aims for the best rental returns possible. Unlike other property investment companies, we help our investors acquire wholesale rooming houses that can generate 8% or more in gross rental yields.
Pro Tip: Remember that ROI isn’t the only aspect to consider when determining the profitability of rental property investment. You should also consider the cash flow, potential appreciation, and tax advantages of investing in rooming houses.
Importance of Calculating ROI Before Investing
The High Yield Property Club encourages its investors to calculate ROI before investing so that they are aware of what’s next and may plan for the future accordingly. That is how investors will have strong, consistent capital growth for decades and will continue to have outstanding returns on investment in the future.
Before making an investment in a rental property, you need to evaluate the ROI for multiple reasons:
Compare Investments
Calculating ROI enables investors to compare different options and choose which one makes the most sense regarding their financial goals.
Set financial goals
Calculating the earning potential of an investment can help you define clear goals while assessing how much risk you’re ready to take on. That said, you may want to shoot for higher returns if you’re considering a risky investment. However, this is not the case with High Yield Property Club. Our rule for gross rental yield is straightforward. We will not offer our members a rooming house with a return of less than 8% in the Brisbane City Council area. That’s the minimum gross renting yield we’ve found we can achieve in the Brisbane property market. This means the property can be a high-performing asset in our client’s portfolio.
Determine Profitability
Calculating the ROI of a rental property enables investors to weigh an investment’s potential before deciding to buy. By comparing your anticipated earnings with the amount of money you need to acquire and maintain the property, you can get a better idea of whether or not it will be beneficial.
Identify Areas for Optimising Return
Finally, evaluating ROI for the best rental returns in Australia will help investors determine areas to improve or make adjustments to maximise profitability. For example, you need to understand how the property works for your target market. With rooming houses it is easy to overcapitalise in shared living areas and undercapitlise in individual living areas in the floor plan. Watch our 90-minute video masterclass on investing in 8%+ Return Wholesale Rooming Houses to learn more.
How to Calculate ROI for Rental Property?
One of the simplest ways to calculate the ROI for a rental property is to deduct your annual operating expenditures from your annual income and divide the total by the mortgage value. Another simple way to evaluate the ROI of a rental property is to examine your cash flow, which is the amount of money you have left over after paying all essential expenses on a rental property each month.
Our 90-minute video masterclass covers the general income and outgoings of our 8%+ Wholesale Rooming House System™. Click here to watch the free masterclass.
MAKING THE RIGHT CHOICE
“We handle everything for you, from the beginning to the end.”
Unlike traditional residential dwellings, our rooming houses will always remain in demand as long as people need affordable housing. Please note that we aren’t considering apartment returns in Brisbane because apartments there aren’t as good an investment as rooming houses for our clients who want to accelerate their property asset accumulation. All of our rooming homes are brand new, purpose-built properties within the Brisbane City Council catchment area and offer a gross rental yield of more than $90,000 per year, which is equivalent to 8% or higher.
We do everything for our High Yield Property Club members, from locating the land to dealing with the builder or property managers on your behalf, so that everything is handled from beginning to completion.
HOW HIGH YIELD PROPERTY CLUB BRINGS YOU THE BEST RENTAL RETURNS IN AUSTRALIA
When it comes to rooming house investment in Brisbane, High Yield Property Club continues to attract savvy investors. Generally, suppose you don’t put time and effort into finding the right location and dealing with all the chaos that comes with the right property investment. In that case, you will be losing the best rental returns in Australia and might suffer in finding long-term reliable tenants.
These are just a few of the reasons why High Yield Property Club is regarded as Australia’s best rental yield. We do it all for you, from the beginning to the end. Our team can develop your Brisbane Rooming House property from scratch, from prospecting for the right property through to your property management. Within 10 years, our investors will enjoy robust capital growth and immediate equity uplift.
So, if you want to get the best rental returns in Australia and raise your ROI, consider investing with High Yield Property Club. We have the knowledge and experience to help flourish your property portfolio in no time.