I know of a property. I have had a vendor finance offer approved on a property, but my financing fell through.

I could pass the information onto you, but what would be in it for me (the magic question).

The property is on the market at $75,000 in a rural town centre and vendor finance has been approved with a sale price of $80,000. Pay $64,000 on settlement, $5,000 in 3 years and the remaining $10,000 in 10 years. No interest on the vendor finances

You can contact me from my site http://cashflowinvestor.com.au/contact if you are interested

Ryan McLean

My family home is on a block that slopes away from the road and they were unable to funnel their water onto the road.

So instead all the water funnels into a pit underground. The pit is just made up of gravel underground and all the water goes there. It is cheap, and it works.

It isn’t water tight or anything and doesn’t need pumping. The water just goes into the gravel pit and then disappates into the earth.

Also, the gravel pit is far enough underground that grass/plants can grow on top of it.

Ryan McLean
http://CashFlowInvestor.com.au
Positive Cash Flow Properties Are Just A Click Away

May I ask why you are choosing Melbourne as a place to invest?
Melbourne isn’t necessarily positive cash flow.

I would be interested to know your reasons for choosing Melbourne and what your long term investment strategy is.

Ryan McLean
http://CashFlowInvestor.com.au
Positive Cash Flow Properties Are Just A Click Away

Hey EvaCD,

The most important thing for you to do is to have an investment strategy. What exactly do you want to achieve from your investing?
Do you want passive income? If so how much?
Do you want capital growth? If so how much?

Is it that you want to live in Liverpool or are you just investing there because you can afford it. If you want to live there then it creates a whole separate dynamic to the purchase. But if it is purely investment purposes you have to ask yourself “Why Liverpool?”

Just because it is in Sydney doesn’t necessarily mean it is a good investment. Also if your goal is to retire off your investments your property is likely going to be negative cashflow and go against your strategy.

Think outside the box. Don’t focus on “Liverpool” as the be all and end all of your investing. Don’t even focus on Sydney as the be all and end all. Instead, work hard to develop achievable goals. If you know exactly what you want to achieve you can assess each property and see if it is going to achieve exactly what you want. If it doesn’t you move onto the next.

If you need help finding positive cashflow properties I run a site that may be of help to you. The link is in my signature.

Ryan McLean
http://CashFlowInvestor.com.au
Positive Cash Flow Properties Are Just A Click Away

Buying positive cashflow properties is probably your best bet. As interest rates rise, rents will rise and some positive cashflow properties will help offset your current property if it does become negative. With 400k to use you could easy create some nice passive income from properties.

Try http://cashflowinvestor.com.au it is a positive cashflow property finding service. It could save you all the legwork of searching high and low to find a positive cashflow property.

Paying off your debt could be good short term, but not long term. Cash is a depreciating asset, if you pay off cash you are effectively buying a liability (money). Buy using your cash to buy a property instead you get all the growth that comes with it and therefore become richer more times over.

Make sure you have a passion for this. Renovating is not easy.

Seminars and learning are good, but it is still a good idea to start slow. Buying a $1 million fix up job is risky for your first time around. Start small and build your way up. That is exactly what I am doing

Ryan McLean
http://CashFlowInvestor.com.au
Positive Cash Flow Properties Are Just A Click Away

@ Ryan – Thanks for your input. I am also looking to buy a property to subdivide. Knowing that it will take around 12 months to achieve subdivision might change my mind about going ahead with the subdivision. Why does it take so long?

What if you want to subdivide and then sell off the land? Do you still have to pay for water/sewage connection and stuff like that? Or is that only if you want to build on the site?

Generally speaking do you know the minimum land size for subdivisions on rural centres?

Ryan McLean
http://CashFlowInvestor.com.au
Positive Cash Flow Properties Are Just A Click Away

Wow this is really interesting to know. I haven’t started development yet but I am definately looking to develop in the future.

All the legal document mumbo jumbo confuses me so seeing that it has to be 5.4m is easy to wrap my head around

Ryan McLean
http://CashFlowInvestor.com.au
Positive Cash Flow Properties Are Just A Click Away

Advantages of Trusts

– Asset protection
– Tax benefits (if used properly)

Disadvantages

– More difficult to find lending
– Cost to set up

I purchase each property in an individual trust with a non-trading company as the trustee of the trust. This offers the ultimate asset protection.

It will likely cost you around $212/year to own a company and $0/year to own a trust. If you go through an accountant you are looking at around $1,200-$1,500 to set up your trust/company.

I would never invest without a trust, especially if I was going to buy multiple properties.

Ryan McLean
http://CashFlowInvestor.com.au
Positive Cash Flow Properties Are Just A Click Away

I have also been looking at Horsham as a place to invest. The thing with the water situation you have to think about is that if we do in fact come out of drought, then the area will certainly grow. If it relies on agriculture is relies on water, and the more water the more profit. The more profit the more people and the more people the more you will see a profit.

Every town has its risks, you just have to decide whether or not you are willing to take the risk. I invest in positive cashflow properties in different towns all over the country as to minimise my risk.

Ryan McLean
http://CashFlowInvestor.com.au
Positive Cash Flow Properties Are Just A Click Away