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For all the people looking for cash flow positive property investments and can’t find any just 3 pieces of advice, LOOK HARDER, LOOK HARDER AND LOOK HARDER.
Dazzling and Adam
Very well said. Thanks
Hi Steve
Thanks for the opportunity,
I have just completed for the first time in my life a personal cashflow for the previous 2 years and had negative balances every month. Any tips on how to turn this around.
Hvae a good day
Dazzling
You are not alone. My wife wants nothing to do with investing in property. She wants to own the property and she used them for a bragging right one day against someone she didn’t really like who was giving her the <edited>s about them bragging about what they had.
She is extremely good at sreaming abuse from the side lines without really knowing what is going on in the game. And has absolutely no interest in gaining any extra knowledge about anything .
We are involved as joint tenants in all our real estate ownerships. so I need her sigs. to move ahead. But I tell her nothing of how much things cost, how much I borrow , how much rent we get and how much I spend fixing things, or body corps or rates or when the properties go up in value.
So that is how I deal with it . I tell her nothing.
The biggest down fall of this is when a property rises in value and the real estate agents calls you to tell you that today you are tens of thousands of dollars better of , you have no one to share that good experience with.
It definately is hard when your biggest detractor lives with you. Don’t let them discourage you.
Good luck……
jjaaus
Thank you for raising my awarnes about the landlord insurance. I actually did have a vacancy in a unit i own in cairns. i asked the insurance company just then about a claim for a month of vacancy between leases and they said NO. So the expense relating to vacancy allowance stands. What is the insurance actually for ? you would probably be better off cutting that. I guess it is for extreme cases where people don’t pay their rent or trash the place. A good rental mananger should not let this happen anyway..
minidaz
Definately have the investment properties in a different loans to your principle place of residence. The deposit amounts will be added to the loan against your existing ownerships. I guess you can account for this and that section of your loan can be dedicated through your accountant for investment property purposes. All a bit messy but should still work.I am equity based also. I have not taken into consideration at all the deposits I have gained against the equity of the ones I own. Perhaps I should…
jjaaus]
The insurances actually covers building insurance in case the thing gets blown away, public liability and stuff like that. The repayments are based on 7.3 % interest only. I have no deposit I am equity based, I have no tax advantage I make no money. This all very well but I have been looking around this site and some people take the view that a property bought at $50,000.00 should rent for $150.00 per week. This would solve all my problems. i just have to look harder. Look at Hughenden west QLDBest leave the polished floors until the very last. After painting and carpet. Don’t walk on them for 3 days. Add 30 % to your budget. Try and keep site tidy.
What I have done is develop a comparison page set ou as below
Property costs
Stamp duty
Lenders Fees
Soloicitors Fees,
Building inspection
Other
Total
Deposit
Loan amount
Loan Repayments
Rates
Body corp
Insurances
Maintenance
Vacancy
Agents fees
Other
Total out goingsRental income
Net Income (Loss)
Net income / Property cost
Tax deductions first year
Tax deductions other years
Tax advantage
My income (costs) per weekThis little page sorts out really quickly which properties make or loose money. You have to know the scales of such things as stamp duty , interest rates, and your own tax advantage.
Each property has its own dimensions and it is hard sometimes just use a simple rule. However they are a good starting point
