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What is this agent on????

Discussion in 'Real Estate' started by johnnyb, 12th Sep, 2006.

  1. johnnyb

    johnnyb Well-Known Member

    Joined:
    16th Aug, 2005
    Posts:
    190
    Location:
    Hobart
    I'm sure we've all seen RE ads where the description of a property will include something like "Great Investment", and usually it is nothing of the sort (by my standards at least).

    On browsing realestate.com this morning I found a great one indeed. The property is a block of flats, and the title on the ad is "Investment - Cash Cow!". Hmmmmm. Given that it is inner (sort of) Brisbane I thought this unlikely, but you never know with a block of flats, so giving them the benefit of doubt I clicked for more details (http://www.realestate.com.au/cgi-bin/rsearch?a=o&id=103269144)

    Asking price $1.4M, with rental income of $74K! What the!? Since when does a 5.3% yield with interest rates of 7% equate to a cash cow. Even if you had $1.4M in cash lying around you could probably get a better return from a term deposit (after you take into account rates, insurance, PM, etc).

    John.
     
  2. See Change

    See Change Well-Known Member

    Joined:
    17th Aug, 2005
    Posts:
    59
    one could say the cash- cow is Bull. ;)

    See Change
     
  3. Jacque

    Jacque Team InvestEd

    Joined:
    16th Jun, 2005
    Posts:
    1,885
    Location:
    Sydney
    Hmmm... right up there with Astutue Investor, Positive Cashflowed Property and First to see will buy.

    All advertising-agent speak that, quite frankly, is wearing a little thin!