I am looking for positive geared property in Victoria?
* Country towns?
* Metro melbourne?I can’t find anything near positive geared on th net.
If you are looking for a pos ‘geared’ property in Victoria using a low or no money down deal then I reckon it doesn’t exist at the moment.
You may be able to find a pos ‘cashflow’ property however.
This is different to pos ‘geared’ – it is neg geared at first, but becomes pos CASHFLOW after tax.
To find one such as this, you will need to find a property built after 1987 so you can maximise depreciation deductions on your taxable income, and you will probably need to use a larger than normal deposit as well.
It would probably also need to be a cheaper property with a decent rent return – at least 8% to get it over the line.
You can buy a report from Residex which will give you the most likely postcodes to deliver the best returns and cap growth for the next 5 years. Then you can research those areas in greater depth to find a possible candidate.Cheers,
Marc.
[email protected]Hi all
I’m not sure I agree with Marc’s definition. The positive cashflow properties I end up with are +ve without depreciation if that’s what you are talking about.
With Steve’s 11 sec solution the return is 10.4% or better if the property meets the formula.
If you are trying to buy +ve cashflow then I believe you are going to struggle in this market in most places, that is not to say they can;t be found, just more difficult.
Steve is these days advocating Problem + Solution = Profit. That is to say using strategies such as cosmetic renos and developments and / or sub-divisions.
He is suggesting that we find problem properties, add a solution and unlock the profit.Bear in mind all the costs associated with such strategies and be REALLY clear on sale prices and as long as it is managed and sold well there should be a wealth of opportunities out there for everyone.
Warm Regards
SueMIT | Owen Real Estate
Email MeHi Again
I forgot to add there are a vast number of investors out there that would never need to buy via the net. These are the ones that do the legwork and build relationships with agents so that properties are passed to them BEFORE hitting the mainstream market.
A point on Cap Growth, with Steve’s strategies the Cap growth is a bonus that we do not count on.
I for one am not into “buying and holding” or “Buying and hoping” as Steve puts it. And I am into creating wealth not saving tax as an investment strategy.
Hope this helps
Regards
Sue
SueMIT | Owen Real Estate
Email Me“Hi all
I’m not sure I agree with Marc’s definition. The positive cashflow properties I end up with are +ve without depreciation if that’s what you are talking about.”Hi Sue,
I think rod27 is saying he can’t find anything that is either positively cashflowed or positively geared based on the normal purchase price and the rent return. From what he posted it sounded as though he was looking for a ‘traditional’ property purchase that is +geared – not a wrap, or lease to buy deal, or renovate/subdivision etc.I tend to agree with him on this, and further to that I think you would be VERY hard pressed to find a straight postively GEARED property in Australia without putting in a substantial deposit.
To reiterate:
A positively GEARED property is one that has more rent coming in than there are expenses going out, and based on today’s interest rates that would need to be AT LEAST a 10% rent return with a cash deposit of some sort as well.
A positively CASHFLOWED property is one which is initially -geared, but after all factors (including tax return) are considered, becomes positive. There is no tax payable on them as they are positive AFTER tax.I haven’t seen a property (that was worth buying) with a rent return near 10% of recent times.
I would (I think we all would) be interested to hear from anyone out there who has found one, as described above, in recent times.Cheers,
Marc.
[email protected]Buy below market value, rent out at market value or slightly higher with a few creative techniques (not difficult).
Worth buying? Well thats your opinion. The above strategy is fact which I have completed many times this year and as recently as last week. Hard? No! Easy? Not as easy as picking an apple of a tree.
Good luck!
Oscar [biggrin]
HI,
Frankston has been an area mentioned several times here. I am in the process of purchasing a property near the university myself.
I am in brisbane and the area reminds me a little of the northern suburbs of brisbane before it became popular.( Redcliffe ,Sandgate, Shorncliffe) I beleive their is much opportunity in creating positive or cashflow positive income in this area. Their seems to be quiet a few properties with subdivdable land. Hope i am right.Dom
[biggrin]Oscar, there is no such thing as buying below market value. Whatever you pay IS market value.
I have found one property that was cashflow positive. It was a commercial shed for $235,000 at $1,800 rent per month plus outgoing. But it was only a periodic lease and I was not sure enough that I would attract a new tenant, so I gave it a miss.
I think in the commercial market cashflow positive deals are still available. But there is normally a problem that you have to overcome.
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