Positive Geared

Hi f1

I know that feeling well but as Koshy says, patience is important. Opportunities present themselves when you know what to look for, and often aren’t obvious unless you do know what it is that you’re looking for. When they present you then have to act.

Have you read Steve’s books? In residential property it is extremely difficult to find an IP that is already CF+ unless you are investing in NZ or USA. In the Masterclass Steve educates you on how to create a CF+ IP.

Alternatively you can invest in commercial property but generally the amount of money you require is greater.

Education is the key.

Good luck

pr

Hi F1Jordan,

Try this;

Part A.

*Take a break and give yourself a bit of time to re-energize. (Try 10 days without thinking about anything to do with investing) after that

*Speak with a broker (experienced and someone you can get along with) and find out exactly how much you can borrow.

*Ask yourself why you want to find a cashflow positive property/s.

*Make a plan of how you would manage the property once you obtain one.

*Make an honest list of your talents that you can use in part B (if it is a family effort everyone should do this). If you want to be corny you can even have a family meeting. There is no point investing if you are the only one who has a committment to it.

Part B.

*Look in all the places you had before. There still are not any cashflow properties, right?

*Make a list of all the reasons you can’t find what you are looking for in those locations

*Now start looking for locations that don’t have any of the attributes on the list.

*Never ever but an investment purely because of a certain gross yield number. Look for fundamental value in the town/city.

*Never ever buy a problem you can’t fix (or have someone fix for you)

*Always use real numbers

*Always ask questions (no matter how silly you think it is – you will be surprised) The other day I asked an agent “so what is wrong with ths property” and got what translated into a long list of obsticles. Sometimes you will get the truth especially when people know that is what you want to hear! I still may buy it!

*Always pay for good professional advice before you make a decision

*Always get and independant valuation

* Get up from in front of the PC and make some phone calls.

Part C

Now get out of the house and make it happen!

Best of Luck on your journey. Hope you have some fun along the way.

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NZ Investors & Property Spotters
Renovations & Project Management

Hi Richo,

Everyday it seems that I meet someone with new ideas about investing. Each person has a view on where the market cycle is going. Just using the term “market” might whip certain people up into a frenzy. It will be quickly pointed out to us that there is no one homogenus market for anything let alone property. Maybe oil or something but then I’m sure someone could give us a view on the many different markets even for commodities.

Anyway

I like to read alot and talk to as many people as I can about property and things in general. What you will find is that as I said every individual has an opinion.

Talk to as many individuals as you can from different groups and find out what the “trend” amoung that group is. What are people doing? Are they selling and why? Who is buying and why? Talk to older people, younger people whoever. Look closely and business activity. Have a coffee (or tea) at a local cafe and just people watch.

I could just tell you that you should let me do all the hard work for you and find you a cashflow positive property tomorrow. Or I could tell you that I am selling one of my own yielding 10% plus to invest in a new project. However, really what you need to do as an investor is make solid decisions about what you want and why and then find the people to make it happen for you in that particular market. Not the other way around.

For me cashflow investing is all about sustainability. More cash in than out in real dollars (no fancy accounting) means that my entire portfolio pays for itself including maintenance and repairs. Equity gains will allow you to use different strategies to grow your portfolio. Every now and then you may choose to refinance of sell something.

My point is that although my portfolio has reached that point now I am not and hopefully will never be a “yield purest”.

If you are looking for a whole swag of 10%ers just for the sake of it you probably won’t get very far.

Richo, if your market (within reach considering your comfort zone whatever that is) is yielding 5% or 7% then maybe it is better to buy in your backyard but with a different strategy.

You may use a different strategy to make quick cash and increase your deposit amounts or pay down debt. There are so many things to do you could be here all day.

Think of it as a “vibe”. (remember that movie the castle)

The “vibe”for me is that investment property should pay for itself and I should not and do not put dollars in out of my own pay packet. Starting out you may have to modify this a little but try and always think of the end game.

If you a forking out dollars you need to know exactly why and for how long. Think “end game” first and then work out how to make it all happen.

Yield is a tool just like cap growth. It just helps you get where you want to be.

Cheers

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NZ Investors & Property Spotters
Renovations & Project Management

Hi Elly,

Thanks. Good luck with the investing!!

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NZ Investors & Property Spotters
Renovations & Project Management

I am practically laughed at by many when I say I am looking for a positively geared property. I have been told, “In this day and age, you would need a pretty hefty deposit to make positive cashflow returns on property…” I really want to prove these comments wrong, but my research seems to be doing the exact opposite. So are positively geared properties only for those who can afford higher initial cash outlays?[hmmm]

Bayden Hammond

Check out http://www.realestate.com.au
WA then type in Kalgoorlie and Kambalda. You should find a few there. I am not endorsing these places however I am investing there at the moment.
Mikey