In steves book he said he bough 26 properties in Ballarat at an average cost of 50k and recieved a average net weekly positive cashflow of about $50. Ive been going through many properties and calcuating the numbers, but none of the properties come even close to achieving that sort of cashflow for a 50k house.
My question is what do you on average get from a +CF property? And how did Steve achieve the above.
Hi mslodyczka
these types of deals Steve was buying in 1999 unfortunatly those prices have long passed. You will not find home in Victoria showing these returns in 2004.
sorry about that info for you.
regards westan
I live in New Zealand and for a fee find cash positive deals there, email me at [email protected] to join our database
Hi Mslodyczka,
There was a thread called “Buying Cashflow in Oz” in here, but since the debate did not go to some people’s liking it was deleted. It encompassed a very healthy discussion on buying +CF Australia, and it outlined some very valuable/noteworthy points.
Unfortunately some threads do get locked, or worse, deleted without justifiable cause, which is a real shame, as there is much to be learnt from differing views (provided ofcourse that there is no derrogatory inference to any person contained within same).
Anyway, back to your question…..
There are +CF positive properties available in OZ, albeit fewer than when Steve purchased them, nonetheless they do exist, and if you don’t mind buying in remote rural areas, then you will find them easily enough. However, heed the warning, that research into these properties is even more imperative than those in regional areas, mostly because some of these investments offer little CG potential.
As for Victoria, +CF properties are almost non-existent.
Remember do your DD and you won’t be in the “doo-doo” later on!!!
All the best in your endeavours.
Jo
Westan and Monopoly(hi Jo) are right.
DD
Good to see the usual crowd in here helping newcomers.
Don’t sweat the small stuff,and it’s all small stuff!!
Hey DD,
Yes I know people like YOU and Westan (for example) really do do your DD [lmao][lmao] and hence, as an investor I would have faith in areas you researched. Keep up the good work!!!!
Cheers,
Jo
The market has moved since the book was written and as such the returns have changed in the larger areas. They can still be found but you may have to look further afield where the risks are greater.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
mslod,
$50 a week on each property would be doing well these days. Hotrod has achieved such returns on buy and hold CF+ properties, but if you use Jaffasoft’s calculator (on this board) you’ll find that many such properties in Australia are achieving maybe $10. That’s all good- mine are losing about $50 a week, so that’s $60 a week more than mine are making. Re CF+ properties, once you factor in all costs, properties have to be achieving quite a decent rent or it gets chewed up.
I think most would agree on here now, that potential for CG is a reason for buying CF+ property. Earning say $20 a week with no potential for CG… well, one may as well deliver catalogues for an hour a week to get the same money. There would be less stress in that one hour a week than there is in owning a property and having to deal with tenants, repairs etc.
Property is considered a decent investment because it *generally* goes up in price. If the property you buy doesn’t go up in price, then you’ll own it at the end of the day, courtesy of the tenant, but it could be a high maintenance way of earning a low amount of money.
If you earn $50 a week from each property, you’d probably want about 25 of them to make a decent income- and you’ll still have to pay tax on it. And you’ll be paying them off over 25 years…
There are still 50k properties around, and they might even get $120 rent. As you’d be aware, you have to go to smaller and smaller places to find them, or to mining towns- which are often remote.
Yield isn’t everything- it’s only one of the measures in buying property. If you can buy a cheap property in a good location- yay! Bit it isn’t easy to find post-boom.
kay henry
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