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Old 28th November 2009, 08:01 AM
Ken S Ken S is offline
 
Join Date: Apr 2004
Location: Sydney
Posts: 128
Default Random question - rental yield and property price

I appreciate this has not much to do with Mac's but I guess that's the Orange Sofa for you..

Is it possible to calculate a ballpark/estimate on a property price (for an investment property) using a suburb's average rental yield and the current rent? If so, a little help would be appreciated.

Rental Yield* = 4.4%
Current Rent = 320/wk

*according to Managed Funds - Superannuation Funds - Managed Investments

I'm also looking at median house prices, postcode profiles etc for the area and may end up getting a valuation done but looking for a rule of thumb measure at this stage.

Other factor is I am in discussions with the owner directly and not through an agent.

Cheers
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