Hi,
It is possible to acquire possible cashflow investment property in Australia? I have looked at several multi-listing service sites but failed to find one which has immediate cashflow from day one. Any suggestions which areas should I watch out for?
Note: I currently have 3 properties in the North Queensland area but would be willing to invest in other states if necessary.
Thanks.
Allan
Opps, what I mean to say on my original email message was would it be possible to find positive cashflow property not possible. [
][]Thanks again.
Allan
Hi AllanFC
As a general rule, the further out from the CBD (of large towns/cities) the higher the rental yeild (and the lower the capital growth). Therefore positive cash flow properties are often found in country areas. I’m not that familiar with Nth Queensland so it’s difficult to give you examples but try Rockhamton (I have a client that purchased two cash flow positive IP’s there last week).
I this helps.
Cheers
Stu [
]No, it’s imposible to buy positive cashflow property in Australia…
And that “aero-plane” thingamajig will *never* fly! [
]Seriously though… your brain will give you the answers to the questions you ask… A better quality of question may be “*how* do you buy positive cashflow property in Australia?”
Just a thought!
Quasimodo [^]
__________________________________________________
It seems to me that action has a most magic way of answering all the questions our fearful mind tries to throw before us…
__________________________________________________Hey Quasimodo,
Re: “Your brain will give you the answers….Ask a better question..”
Good to see that you are putting your “Tony Robbins” learnings to good use! Tony has some pretty cool insights that help everyday.
Appreciated your comments on some of the posts you’ve made too. I look forward to reading more.
Gus
Hi Quasimodo,
Thanks for the advice.
Well, in regards to your comment “Seriously though… your brain will give you the answers to the questions you ask… A better quality of question may be “*how* do you buy positive cashflow property in Australia?”. My reply to that is I already know how to structure deals that will allow me to acquire positive cashflow properties. The only reason why I am asking if it would be possible in Australia to acquire positive cashflow properties is because I am not originally from Australia. I am originally from the US therefore more familiar with the market there and most of my investment properties are in the Central Valley, California. USA. I also know for a fact that in some areas of the US it is impossible to find positive cashflow properties no matter how well you structure the deal therefore people trade off appreciation over cashflow. I know of two ways that have allowed me to get possible cashflow properties 1. Rent return of .175% 2. I could put some cash deposit on the deal instead of using 100% financing.
I would be very interested in finding out how you buy positive cashflow properties in Australia.
Thanks again.
Kind regards,
AllanHi all,
Okay, first post. You guys are going to be responsible for me not getting any sleep for the next few days.[
]I can relate with Quasimodo’s *general* statements about changing the way you ask the question. It changes how you view the world. Here’s what I mean.
Some friends of mine are IP-ing and we share the info and every step of the learning journey. It’s great just talking. However, I never thought about +ve IP seriously. I knew it existed, but just kept loooking and buying -ve geared property in high cap growth areas close to Sydney. Everything we bought was good growth with ok returns; ie. we barely break even on interest payments. Then my friends said they bought a $90K place renting at $140/wk. LIGHT BULB! [
]Now I know it doesn’t qualify for 11 second solution, but it triggered the question…”WOW! How do I find one of those?”. All of a sudden, it became very real in my mind…and that’s the thing that counts.So, now I’m here and it’s a good thing.
Good luck with your hunting. They’re in all likelihood, not in the major city centres. But then again, you never know.
Also, shop around for a good property manager. The competition in Oz is fierce and much better than the US. It will make a world of difference.
Ciao,
Thirsty(aka Jireh)
Try buying the “Australian property Investor” magazine which gives u the median price of all postcodes each issue.
Usually, if it is less than $150,000 your chances of getting a positive cash flow is pretty high.
For rents of $120pw, then the property should not exceed $80,000-$90,000.For $150,000 house, i would guess the rent should be more than approx $250p/w.
hope this helps!
Hi All,
Thanks for all your advice and suggestions.
Kindest regards,
Allan
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