No I am based in Sydney

I run a myriad of online businesses. My most successful being cashflowinvestor. It’s a property finding service.

What type of business are you thinking of running? Starting part time is a good idea as there is less risk. That is what I did

Update: I just visited their site and they offer a great deal of properties with growth opportunities. So it seems they don’t just specialise in positive cash flow.

Let us know how you go with them.

I wonder if CashFlowCapital have properties in Sydney. I have never used their service so I don’t know. I know they focus on positive cash flow properties, and I know that they are hard to find in Sydney.

They have a very credible reputation online and they are extremely popular. Loads of people have used them. I would suggest googling “cashflow…[Read more]

Don’t worry. There are loads of people nervous about posting questions. Forums can be a hazardous place some times. But no question is too stupid. In fact you are only stupid if you don’t ask the questions.

In order for anyone to answer the ‘what should I do?” question, you need to first work out what you want to achieve through your investing.…[Read more]

Well me and my mrs just had a baby and have gone down to 1 wage.
My theory is that the more properties you own the more capital growth and rental income growth you can get. By selling you I/O you are going from 3 properties to 2 properties in order to buy a liability (a loan).

Let me explain:

Money by itself is a liability. It loses its value…[Read more]

Working for yourself is definately rewarding. I love working for myself. If you are smart it can also offer you a lot of freedom. I work about 2 days per week most weeks.

One thing to be careful of. I was confused whether your business was in real estate or whether you were starting your own business and then investing in real estate on the side.…[Read more]

I have been reading a lot of Donald Trump lately and he says to “think big”.
He said it often doesn’t take a whole lot more to build some units than to build a house. It is definately worth looking into, especially if you want to strata title them and sell them later on down the track.

As has been said above…it depends on what you want.

One of…[Read more]

The negative side of positive cash flow is that often the capital growth is less. The guys are right. Capital growth allows you to get rich, but cash flow is necessary to get there.
I would prefer to own 10 positive cash flow properties than 1 negatively geared property. Even though the growth may only be 4% instead of 10% I can afford more and…[Read more]

The problem with anywhere is that it takes time to construct. Not just Perth

What are the LVR’s on a no doc loan? How much more expensive are we talking?

I didn’t realise that low doc loans required you to simply state what your taxable income was in the last financial year. I am not suggesting mortgage fraud in any way, just looking for ways to best get my loans approved. Banks have a lot of lending criteria which someone on a casual wage (even though I am permanent casual and have been there 5…[Read more]

Hi Brendan,

Firstly well done on buying your first property and building up such a good equity base. Everything Richard said is good (he know’s his stuff).

My suggestion would be to think about what you want to achieve from your investment portfolio. Yes you want to be ‘rich’ but break it down and define it more. For me my goal with property is…[Read more]

Just be extremely careful. If the mines ever close down then your property may end up being worth nothing. You won’t be able to rent it or sell it. I know there are a lot of projects at the moment but definately keep an eye on the major players. The big mining companies. If employment ceases to exist people will move elsewhere.

In saying that, I…[Read more]

Basically what Richard is saying is that subdivision isn’t quick. It can take 6-12 months to subdivide a block. So don’t buy it thinking you are going to subdivide in a couple of weeks. It takes a while, but there is a lot of money to be made if you can do it properly.

I think interest only is good in a few situations

1. When someone else is paying for the interest. Such as a neutral or positive cash flow property. If your rent can cover all your expenses and the interest on your mortgage, then you don’t have to pay for it. This means you can use the money left over (after all expenses and interest is paid) to…[Read more]

The more property you own, the more you can take advantage of growth. Owning one block is good, but land almost ALWAYS goes up in value, so if you can leverage one property to buy another property then it could be a good move (if you can afford it).

I agree with you that it would be hard to find somewhere in Perth that is positive cash flow, but…[Read more]

Steer clear unless you know a lot about this investment. Niche markets like resorts are risky.
Often banks won’t lend you more than 60-70% and if the resort goes belly up what will you be left with, a tiny studio room in an empty resort that you can’t rent or sell to anyone.

Not saying you shouldn’t do it, just be very careful and well educated.

This frustrates me with the banks. I can understand their viewpoint though. If I was a lender I would never take 100% of the rental income into account. As Richard said, rates, water and a whole bunch of other things (vacancies, management fees, maintenance, insurance etc) all have to be paid for out of the rent. For a lender to take 100% would be…[Read more]

Yeh Rod,

If you have done the place up I would look at getting it revalued from the banks. I don’t think there would be much point in getting a real estate agent to value it, as the banks have their own valuers they use and they likely won’t even look at anything the real estate agent has done. If your property is worth more then you could look…[Read more]