Elm consists of units for owner-occupiers and investors. What investors need to be careful of in elm, apart from buying a unit with a view, is to ensure that the numbers for your investment property ’stack up’. What does it mean by ’stacking up’?

You want to ensure your holding cost is kept to the minimum so you will need a unit with the highest possible rental yield. The 1-bedders would be renting anything from $380-$420/week in the current market. If the 2-bedders top $570/week in rent currently, for a 5% rental yield, you shouldn’t be getting anything more than $592,800 in unit. Otherwise you will find outgoings like interest cost, body corporates eroding away your returns.

All our investors in elm got 1-bedders in there. That’s not to say 2-bedders aren’t good. It’s just that the yield won’t be as good as the 1-bedders. And that’s what I have concluded from my years of investing in Australia.

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