Is the 1% or even 2% Rule Applicable in Australia

[Finn Irving-Dent]

Hi 

I have recently started looking at investing in property in Australia and within NSW more specifically. The 1% rule where the total monthly rent is equal to 1% of the property purchase value has come up frequently as a useful way to quickly analyse if a property is a sensible investment that may cash flow. As I have been looking into buying my first investment property I have found many properties that satisfy the 50% rule where 50% of the total rent income is used to cover all costs excluding the mortgage and what's left is potentially positive cash flow. However I have not come across a single property to satisfy the 1% rule or even come close to 2%.

It may be that I just need to look deeper into the real estate market in New South Wales, or look elsewhere in Australia or maybe this figure of 1% is unrealistic in Australia and not so relevant?

This is my first post here so apologies if it is inappropriate.

Br, Finn