Hello
I am new to this site and am interested in finding cashflow positive properties. I already have an IP but my income is not high so any property which I don’t have to contribute towards is good.
Firstly, how do you go about finding them? I am thinking of going to North Coast in NSW or rural NSW as there don’t seem to be many opportunities in Sydney.
And although a property may be +ve now, what happens when interest rates goes to 10% or higher? Do you have to fix in a fixed rate period for your loan as well.
Thanks. Any suggestions welcome!
Hi
I am also looking for +ve cashflow properties as my wife is not currently working.
I have been looking at Cairns for houses not units. Units in Cairns are going backwards as far as capital gains is concerned, I want to get something out of it when things are back to normal. As far as I can tell from reading posts in this forum and other sources properties that are +vely geared in regional areas don’t appreciate much.
Someone please correct me if I am wrong in stating the above and can you suggest some areas. I don’t think the bank will lend me the money to buy near a capital city so I am forced to look outside of Sydney.
Also, does someone have a calculation as to what yield is needed to have a +vely geared property? I am assuming that the annual rental income, the purchase price and the loan interest rate come into play somehow but am not sure on how to calculate it.
Thanks
EnuffIsEnuff
Hi Jackie,
There are many ways you can look for cashflow +ve properties, and they exist everywhere, it just depends on what strategy you use as to whether or not you can make money out of them straight away. For example, if you condidered providing vendor finance (eg wraps or lease options) you would have no problems. Its definitely harder to find +ve cashflow properties as rentals, but it depends on how and where you look. Try RE Agents, the Internet, Newspapers, Personal Fliers, Knock On Doors, Investment Groups (like this one) etc etc.
As for rising interest rates, hopefully it happens slowly, rents increase, and you’ve paid off some extra on your mortgage, then you’ll be ok. Worst case scenario is prices have risen a little and you can sell, no problem.Hope this helps a little,
Cheers,
Justin xA good base is to apply the 11 second solution Steve has developed..
Also try searching sites such a realestate.com.au they are a good start to get an idea of areas and relative rents/prices etc…
Pete
…Beware of the dreamtakers…
For rental properties a quick rough guide a mate whos pretty knowledgable uses, is the rent weekly needs to be twice the purchase price/1000. eg $40000 property renting for minimum $80/week is worth looking at…that sort of thing.Ive been looking for the same sort of thing, and they are getting few and far between in NSW, but central coastal Queensland has a few(pls dont buy em all b4 I get some money together!)[
]If you go on realestate.com.au, they give cg’sfor last year or so, and it was in the aforeementioned area around 11%, but i wouldnt expect that to continue adinfinitum…
Good luck, Deany
]If you go on realestate.com.au, they give cg’sfor last year or so, and it was in the aforeementioned area around 11%, but i wouldnt expect that to continue adinfinitum…
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