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.
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!
