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  • Profile photo of usiusi
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    October 30, 2006 - 12:41 pm

    Was the property positive cash flow or negatively geared to start with. If positive…do you want to push it negative, or if negative, can you afford to make those extra repayments??

    If it was a positive cash flow property to start with, I would pull out enough funds for a deposit on another property providing it doesn’t push it into the negative zone. Or maybe if negative, use the money for a positive property…

    Does that make sense??

    Something I definately consider when refinancing and deciding where to allocate the funds.

    Cheers

    Crystal
    Unique Strategic Investments
    http://www.usionline.com.au

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    October 17, 2006 - 11:48 am

    Our main reason for investing is for positive cash flow, however we ensure the properties we buy are in areas with good capital growth too.

    Why not experience the best of both worlds??

    http://www.usionline.com.au

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    October 11, 2006 - 7:27 am

    Hi Lena,

    Auctions can be goldmines! You can purchase property well under value as we have picked up a number of positive cash flow properties this way.

    Having said that, I have gone to auction whereby the price sold on the day was twice of what the sales agent initially predicted.

    Providing you have done your research, you have nothing to lose with an auction. However, it only has to come down to one other bidder who could end up costing you thousands.

    It’s important to stick to your budget and not let emotions get involved!

    Crystal

    http://www.usionline.com.au

    Positive Cash Flow Investments

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    September 14, 2006 - 5:07 am

    Hi Lena,

    Just to pose the question….have you found out why the owner may be selling and why they want to rent it back??

    Say they bought that property for $100 000 (hypothetically) at a 7.5% interest rate (not taking into consideration a deposit either) that leaves a repayment of $145 per week roughly…why would they want to rent it back at $175 per week….yes maybe to free up cashflow, but this maybe something to consider, could mean they are keen to sell (you maybe able to get a better price) or maybe the fees of owning the unit are proving to be costly.

    I would be wary of this investment. Honestly, it’s not something I would probably go for as it’s not a true positive cash flow property.

    Crystal

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    September 12, 2006 - 5:47 am

    Hey Peachy,

    I think your offer can depend on how motivated the vendor is. If he is urgent to sell (ie, moving interstate, deceased estate) then hit him relatively low. You may be surprised to find that he accepts your offer.

    Generally speaking I find if you are accepted on an offer which is 10% less than the asking price then it is fair.

    You may also get a Val done on a property and if it doesn’t come up near the asking price, then use this in your favour as well.

    Crystal

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    September 7, 2006 - 2:31 am

    Hi guys,

    I’m located in NSW and at the moment am concentrating my efforts here. I will have a website up and running shortly though and will let you know when this eventuates.

    There may be formation of some type on Investing group being set up in your state though…

    Try getting hold of member: Sarah B.

    I think she could be another person coordinating something in your area.

    Crystal

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    September 7, 2006 - 2:07 am

    Ditto Josh,

    That’s the strategy that I apply. I would never recommend buying in your own personal name, especially if you want to build up a large portfolio. You will get to a stage where you will be tapped out and lenders won’t be so much willing to lend to you anymore cause of the amount of personal debt in your own name.

    You need to protect yourself and your assests. Having made the initial mistake of buying in my own name first, you should set this up correctly before purchasing property

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    September 5, 2006 - 12:21 am

    Paul,

    It was a regional town, but certainly not small. I think it comes down to doing your research but most importantly, talking to the people in the area and getting a feel for it. Better still, you may want to stay there for a day and get an impression of the place.

    Realistically, a property for only $75 000 really is only ever going to go up, 6 months ago there were plenty of properties for under $70 000, now days you have a hard time trying to find properties worth $90 000.

    Talk to agents, ask them about rentals if your not sure. I really have never had problems with getting tenants in if the demand is there. Everyone needs a place over their heads and its surprising these days how many people would prefer to rent rather than buy, especially considering the minimal costs of these properties.

    Crystal

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    September 4, 2006 - 8:42 am

    Hi Paul,

    Nigel is absolutely right…have the best of both worlds! Like you, I am 22 and have a number of positive cash flow properties. Pick the right one in the right area and it will also experience great growth. For example, I purchased a property for $75 000 in late 2004 which has been rented for $150 over this period of time. 18 months later. I have sinced refinanced it and now in the process of selling it for $130 000.

    I n only 18 months it grew $55 000…and had positive cash flow. You do the sums on that!

    In the long term, if you are looking for financial independence, I believe positive cash flow is the way to go. Managed correctly, it will fund you for life.

    Let me know if you need any assistance.

    Crystal

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    September 3, 2006 - 10:28 am

    Hi Frank,

    Sorry that was kind of cryptic!

    What I mean, is that you may initially buy what you think is a negative cashflow property but could be turned into positive cash flow…like a property over two blocks which you can subdivide and either sell off and reduce the mortgage if you wish or put a home on it or just completely redevelop.

    It may involve a little work, but if you do it correctly, the numbers could be amazing. Or look for ‘added extras’ in a property. What about a two storey house that has two separate fully self contained living areas which you can both rent out to achieve +ve cash flow…

    There are so many morer ideas you can make work for you, I’m just about to turn an already +ve cash flow property into dual income.

    :) Just think outside the square!

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    September 1, 2006 - 3:25 am

    Cash flow properties are everywhere. However, these days they don’t stare at you in the face anymore, you need to think ‘outside the square’

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    August 28, 2006 - 10:01 am

    QL,

    If I can give you a word of advice when it comes to positive cash flow properties. YOU DON’T NEED TO SPEND A FORTUNE!

    Everyone has to live somewhere and as long as there is demand, there will be tenants. Consider buying a relatively cheap property on the basis it has consistent rent return which matches the price of the property. For example, a property purchased for $48 000 and rents for $130 makes sense. A property this low in price in the right area will only ever go up in value, therefore you also gain the capital growth out of it.

    Crystal

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    August 28, 2006 - 9:37 am

    Hi Sarah,

    As others have added so far, that would definately verge on a negative geared property. Will it rent for more than $130 per week if you got a new tenant in.

    I’m 22 and own many true cash flow properties you may be able to compare your deals with.

    For example, I purchased a property for $48 000 which rents for $130 per week at a 7% interest rate.

    Another one purchased for $75 000 and rents for $200 per week.

    You can vaguely gauge if a property will be positive by first looking at it, but take into management fees, insurance and rates and it could easily become negative.

    Make sure you crunch numbers before commiting to anything.

    Feel free to drop me a line if you need help with anything

    Crysta [email protected]

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    August 28, 2006 - 3:37 am

    Hi Guys,

    I’m 22 and have been running a property investing company for the past three years and own approximately 20 positive cash flow deals.

    I know many young people who are very interested in property investing but are unsure or need some guidence before they are willing to take that step.

    As a result, I’m setting up an 18-30 years Property Mentor Program early next year, to get their foot in the door.

    I would love to hear from anyone who would be interested or who simply want to hear how I’ve come this far and how you can too. I live on the NSW Central Coast, drop me a line if you live in this vicinity or Sydney.

    I’m a firm believer you’re never to young to do anything, particularly investing.

    Crystal

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