All Topics / General Property / Cash flow positiv properties -do they still exist?

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  • Profile photo of andrewkimber2andrewkimber2
    Participant
    @andrewkimber2
    Join Date: 2003
    Post Count: 27
    January 23, 2004 - 1:22 am

    Hi All,

    I live in a city called Albury on the Vic/NSW border. I currently have 2 properties, and looking to acquire a 3rd. Problem in this area is that the prices have risen so high that its almost impossible to acquire a cash flow positive (or even neutral) property. As an example a house fetching $220k would return around $170 per week in rent.

    So I have to ask the question, do cash flow positive properties still exist? What areas should I be looking in?

    Also, I spoke with my finance broker recently who told me that the banks use 75% of the expected rental for serviceability purposes. This poses a problem because how can I accumulate multiple investment properties and be able to finance them all. Even with a 5 or 10% deposit, if the combined properties are worth, say, $800k of which $700k is financed and I earn an avg income of around $60k per year, how would I be able to finance them?

    All advice/feedback appreciated.

    Andrew.

    PS I haven’t been on this site for a while – it’s good to be back. The recent changes to the website are great. [:)]

    Profile photo of Michael4Michael4
    Member
    @michael4
    Join Date: 2003
    Post Count: 70
    January 23, 2004 - 3:59 am

    Hi andrew,

    If you look in older pages in the forums you will find out that this questions has been posted already and there a few pages on it.

    However they do exist and i just aquired 4 of them.

    I’m in a process purchasing 6 more but i ran out of depoist so i’ve got to find a way around to make it happen.

    There is a top on all the stories of members who and how much they purchased their properties for.

    Just go to older pages and scroll until you find the topic that says something abut positive chasflow stories or similar.

    Hope this gives you a bit more hope on finding your +pve properties.

    [:p[:)]

    Profile photo of kay henrykay henry
    Member
    @kay-henry
    Join Date: 2003
    Post Count: 2,737
    January 23, 2004 - 4:15 am

    Michael,

    Do you mind if I ask in what kind of areas you purchased your properties? Regional? rural? Population size?

    Thanks- hope it’s ok to ask :) Just wondering where the CF+ properties are, and if one has to go to smaller and smaller towns to get them :)

    kay henry

    Profile photo of Still in SchoolStill in School
    Member
    @still-in-school
    Join Date: 2003
    Post Count: 1,844
    January 23, 2004 - 6:02 am

    Hi Andrewkimber2,

    So I have to ask the question, do cash flow positive properties still exist?

    +ve cashflow properties still do exist, though for the many who are getting loans at higer interest rates, its is much harder for them to find +ve cashflow properties that fall will fall inline in how their loan is serviced.

    If you got a deposit available, you should be able to, turn some properties into +ve cashflow.

    Cheers,
    sis

    People 4get that by saving just $3 a day & investing it sensibly
    over a working life, you’ll end up with around $1 million

Viewing 4 posts - 1 through 4 (of 4 total)

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