I live in Sydney and so far have not been able to find Cashflow positive properties in Sydney. Am i missing something?
I appreciate that I need to probably go out of the city but is there and efficient way to do the search (maybe online) for the properties that work and make the trip outta a town efficient?
Thanks
I think you would be battling to find cashflow pos properties in urban areas unless you target commercial properties, or really run down resi places that you can buy at close to land value then add value by doing a quick reno.
I specifically target new property in regional areas that are growing, so by default this would be mining areas.
Target the ones which have large global miners in operation, who are spending 100s’ of millions to incease production and have mine and resource lives of 20+ yrs and as far as I am concerned, you can’t go wrong.The places to look ar WA, NT and QLD.
By dealing in only new property, you get maximum depreciation benefits, and all your maintenance worries are non existent.kp
JM
As KP mentioned + CF properties are not on every street corner especially in the capital cities. You need to look to add value to a property i.e increase the GFA / extra room / subdivide etc etc.
Most of the higher yielding properties tend to be in the regional area where you are likely to experience less capital growth.
The other option is to look at financing altenatives such as wrapping, LTO, shared equity etc etc whereby you enjoy the security of a property close to hand and then increase the income by onselling it utilisng vendor finance.
Cheers
Richard Taylor
Residential & Commercial Finance Broker.
Licensed Financial Planner. Ph: 07 3720 1888
[email protected]
Looking for life cover – We Guarantee to beat any quote you have in writing.Richard Taylor | Australia's leading private lender
Hi Just M & Welcome,
From a beginners point of view, that I share with you, I definately think the statement ‘CF+ properties are made not bought’ is a key thing to remember.
This forum is loaded with technqiues and info.
Try using the ‘Search’ function on the ‘Forums’ tab up top. You can look up posts with the words like ‘tips for creating’, ‘tips’, ‘where CF+’ ect ect in the post titles.
Also – click on the ‘General Property’ forum and you’ll see the first post in this forum holds a heap of tips.
Read, learn and be prepared to put in the effort and – read and learn. [biggrin]
Thanks for this – the mining towns makes sense.
Are there any reputable websites or search agents that can source the properties for clients.
Do you usually visit properties to confirm the tenants are happy to stay and the rent they are playing or do you rely on an agent? If it is the later what recourse do you have if the rent estiimates do not come through?
Thanks Jay M
Richard
what is LTO, and wrapping and shared equity?
“The other option is to look at financing altenatives such as wrapping, LTO, shared equity etc etc whereby you enjoy the security of a property close to hand and then increase the income by onselling it utilisng vendor finance.”Lease To Own, where you buy a property and lease it to a tenant with an option to buy. You structure the repayments so that the tenant buyer pays rent as well as an ongoing option fee towards the purchase of the property. This totals to a greater amount than the repayments you pay on the underline mortgage hence the cashflow is positive. If the tenenat exercises the option to buy the property, you credit the option payments towards the purchase price ( but not the rent) and if the option lapses then you keep the option fee.
Wrapping is where you sell a property under vendor finance terms by putting in place a wrap around mortgage over the underlining mortgage. The repayments you collect from the buyer (or wrap buyer or wrapee) are greater than the repayments you are making to the original lender ( eg,, bank ) hence pos cashflow once again.kp
Hi
there are always opportunities to find positive cash flow property. If you are looking for simple cash flow opportunities you will need to look outside Sydney.
I would suggest you look at key towns throughout NSW that have large stable populations. YOu may also want to look interstate. Depends on your budget and risk factors.
Hi everyone,
I have located 3 +cf properties that can make you between $150 and $250 per week. I would buy them but i can’t afford them because I’m a uni student.[angry2]
If you want any infomation re the properties please give me a call.
0433041225
tp
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