Hi all,
I am new to the forums. I would like to know what sources you all use to find CF+ve properties. If I was to do a search on Domain.com, then I get the prices of all the properties on sale, but you cant find out returns unless you ring every agent for every property individually. How am I to easily seek out areas with high returns? Any advice would be greatly appreciated.
Other than scanning Domain.com, where else is a good place to look for properties?
Many thanks,
Hols.
Holly Elsworth
it will cost time and money but you need to do it – that is call the agents up and ask them – the advantage to this is that you build up a good relationship with them
Kind Regards,
George.If You never never ask, you’ll never never know”
Hi Holly
Welcome to the forum. Unfortunately looking for good cfp’s is indeed harder, but the web site is actually the hardest way to find them.
Everytime I go and inspect my properties or am in town doing a reno or the like I also find another property, it happened this weekend unfortunately with my move interstate coming up I can’t do the reno myself and have to pass it over. But if we were staying in Melb, it would definately be a rough diamond!
So do family weekends away and look around. Also work out what your criteria is that will help you to find what you are looking for.
Good luck
Cheers
Leigh K[biggrin]Originally posted by holels:Hi all,
I am new to the forums. I would like to know what sources you all use to find CF+ve properties. If I was to do a search on Domain.com, then I get the prices of all the properties on sale, but you cant find out returns unless you ring every agent for every property individually. How am I to easily seek out areas with high returns? Any advice would be greatly appreciated.
Other than scanning Domain.com, where else is a good place to look for properties?
Many thanks,
Hols.
Holly Elsworth
Wellcome to the forums Holly. I suggest you concentrate on a couple of areas at the beginning. Look for an area (via Internet) that yields are good and have potential. Then research the area (via Internet) to see where it is going. Once you have done that, you can hop in your car and visit the local agents to build up a rapport with them. If you try to look at the whole country or even the whole state you live in, it will seem a little overwhelming.
Trust your gut instincts on where you think you might find good properties.
If it was easy Holly, we would all be zillionaires by now!!!
Good luck in your searching.
‘Eat rich food, barbeque a yuppie’ [greedy]
Holly,
Credibility (or perceived credibility)with agents that you are dealing with is paramount.I would suggest speaking to a mortgage broker first, understanding what you can and can’t do. Maybe even pre-approval…It gives you more bargaining power (I believe) with agents.
Not sure whther you might be at this stage yet, but worthwhile considering in the near future.
James
Hi Guys,
it is harder to find +ve cashflow properties, but, really you have to ask yourself is positive cashflow the real way to go, even if the property doesnt make any capital growth over time, or takes many years to go up in value, im more of a -ve gearer, but i do invest in both, but over time +ve cashflow properties that dont go up in value, there IRR are wasted and in actual fact you will begin to lose money…. hate to say it, but it is true.
Cheers,
sisI bought this property program allows you to view to buy, and then gives you the break downs over the years, it is amazing really, some places can take as little as a few dollars a week from your pocket and be negatively geared, for taxation purposes this can be an advantage.
it depends on your situation. Not all neg properties are bad, especially if they are in growth areas. Take into consideration any depreciation, which over time runs out! This reduces your write downs for tax purposes, so I suggest you look at your own pciture and consider if propoerty neg, pos or neutral is something you might consider…
just thinking aloud!
Elves
Hi Holly,
I was recently faced with the same dilemma as you: Where to find CF+ properties in Australia? As some have already mentioned, the internet really isn’t the way.
All the good properties are already gone before they hit the web and often even before they’re advertised. You really do need to be ringing agents, gaining credibility with them and doing a bit of “leg work”. Unfortunately, you’ve come in at the wrong end of the property boom to “easily” find CF+ properties.
Do a search of the forums and you should turn up some areas that others have looked in for good properties (generally rural). This may give you some places to start researching and hopefully lead you to find your own areas (that everyone else hasn’t already been through!).
Another alternative is to look overseas, which is what I did. However, after looking overseas, I began to find some in Australia as well. Finally, you may want to consider using a spotter to find you a property, but make sure you can trust them.
Getting the first one under your belt is the hardest bit. In the process you’ll pick up some valuable knowledge and it should make future purchases easier to find and complete.
Matt
I totally disagree that +ve geared properties don’t go up in value. they do. I can’t believe you said that, SIS!! I have proof.
*calls westan to the mic….*OK glad we got that straight.
You also said ‘you will begin to lose money’.
and that ‘you hate to say it but it is true’.Sis, sorry, but baloney. *let the debate commence.* Having said that, sure, convince me, but explain what you mean better.
Ok the other thing i really disagree on is that ‘now is not the right time to buy’.
Here’s the irony. When 90 percent of people are sitting around agreeing that “it’s not a good time to buy”, in fear of interest rates rising, “we’ve peaked, the bubble’s burst, it’s downwards from here”, and starting to look at other investments like shares again,
it automatically makes it the *perfect* time to buy, because the unpopularity of property (thanks, media) means it’s now officially a buyer’s market. Be thankful to all the throngs saying it can’t be done staying away in droves and just go on right ahead and go for it. you’ll be able to not only find loads of deals, you’ll be able to put all your conditions on the contract, get long settlements, pick and choose, not be gazumped, get great service from agents, and really it will be heaven. rents will rise. yields will rise, prices will drop…ahh! bliss!
Actually you can already find CF+ve deals now.
Even in NSW. I’m so bored these days with proving people wrong who say ‘they’re not out there now’ – but last time i felt the urge to prove it was only about 3 months ago. I just surfed NSW property listings under 100K. Found quite a few which were close to CF+ve like 9 percent, and they could be negotiated to CF+ve easily. Just find some that are close and make some offers.I can’t remember all of the suburbs that had deals but I remember Kempsey was one of them.
And that’s on the coast, isn’t it? So how bad can it be?Also try Darwin. I hear that’s got some great infrastructure and planning stuff happening which will mean CG as well.
to sum up, there will always be people who say, look, you might be right, but I’d rather stick with the 90 percent. We may all be wrong, but at least we’ll all be wrong together.
Sure, and cool. but if you want to be in that 5 percent of the population that retire with a bit of moolah to their names, you obviously won’t get there by doing what 90 percent of people do. geddit?
cheers-
miniHi Mini,
your correct in what you say, but do please have a read of what i wrote again,
is positive cashflow the real way to go, even if the property doesnt make any capital growth over time, or takes many years to go up in value,
as long as your property does go up in value, its fine, but the value of the property has to index to the increase of inflation at the same rate and time, and this so goes as well for the rent.
… though if your +ve cashflow property does not do this, it will in actual fact be a blinded loss.
the other way to combat against this, is to have as many +ve cashflow properties, but when i say many, as many as it takes so that your passive income from your properties are the same as what the current inflation rate is for the amount you want each week in cashflow.
Cheers,
sisOriginally posted by Still in School:Hi Guys,
It is harder to find +ve cashflow properties, but really you have to ask yourself is positive cashflow the real way to go, even if the property doesnt make any capital growth over time, or takes many years to go up in value, im more of a -ve gearer, but i do invest in both, but over time +ve cashflow properties that dont go up in value, there IRR are wasted and in actual fact you will begin to lose money…. hate to say it, but it is true.
Cheers,
sisI am sure many people still looking for +ve CFP and it is now become harder to find it.
SIS,
You are now a -ve CFP guru and therefore you can partner with Yack as he is the expert in the so called ‘Quality Investment Property’.
If it is now hard to find +ve CFP, therefore there are a lot of -ve CFP out there. The market seem to peak already (I think)! I just wondering how one consider -ve gearing property is a good strategy and how do they know that the area that they are investing is going to grow in the future.
I am sure most -ve gearing’s guru would say it will grow if you hold it for long term! (7-10 years. Can you manage to hold that long become you invest into another property?
What if you want to build your portfolios much bigger and faster then the norm (7-10 years)? How do you do it?
With -ve gearing, there are serviceabilty and therefore you will reach your limit eventually, how do you go on from there?
Your positive and negative respond is appreciated in advance.
Kind regards
Chan Dollars
[Retire Young, Retire Rich] [strum]I have not had any luck searching on the web, but find many by getting out there building a network and doing the old fashioned footwork.
Regards Bear
POSITVE CASHFLOW properties and Joint Ventures available!
For the BEST deals register via E-mail [email protected]
DONT MISS OUT!!!!!I am not sure how to respond – but here goes.
1. I have been investing for much longer than 1-2 yrs. So my properties have grown in value and rents. As that happens I buy more quality properties. My last property was purchased two years ago.
2. I make my portfolio of properties ve neutral. Some are ve+ and some ve-. Thats because I have had time in the market.
3. If I was a newbie what would I do? I really dont know. I would probably err on the side of caution and wait 2-3 yrs.
I recall that back in Oct 2000, I borrowed $10k and put the money into a BT Time (Technology)Fund. Do you remember those days when everyone was making heaps of money out of IT stocks.
In March 2004 its worth $3300.
I am not saying property will go down by 60% but it could go down 5-20% or remain flat for a very long time – some say 4-10 yrs.
So regardless of ve- or ve+ should we really be buying now???????
I dont think any ve+ return would compensate me for buying a property now that will not increase in value for a very long time.
Originally posted by Chan$:SIS,
You are now a -ve CFP guru and therefore you can partner with Yack as he is the expert in the so called ‘Quality Investment Property’.
If it is now hard to find +ve CFP, therefore there are a lot of -ve CFP out there. The market seem to peak already (I think)! I just wondering how one consider -ve gearing property is a good strategy and how do they know that the area that they are investing is going to grow in the future.
I am sure most -ve gearing’s guru would say it will grow if you hold it for long term! (7-10 years. Can you manage to hold that long become you invest into another property?
What if you want to build your portfolios much bigger and faster then the norm (7-10 years)? How do you do it?
With -ve gearing, there are serviceabilty and therefore you will reach your limit eventually, how do you go on from there?
Your positive and negative respond is appreciated in advance.
Kind regards
Chan Dollars
Hi Chan,
Congratulations on your 20 tonner! [thumbsup2]
im with Yack all the way on this, and i do also invest in both types of +ve and -ve geared properties, but lets say for my argument sake, there is no way today possible that i could achieved what ive down with out purchasing -ve geared properties.
not only that my portfolio is over $2.1 mill ++ and in less than 12 months, (thanks to the -ve geared properties [party]) there is no way, i could have done that with +ve cashflow properties, and with my part time job and continously reducing my working hours every few months…
yet still at the same time, my equity is still blowing through the roof and giving me huge buying power to purchase properties ranging between the $250k – $300k mark, which have been the last few, yet at the same time, non of this is costing me a cent…
i will admit, i am a +ve cashflow buyer, but when the figures stack up, a few $100’s a year to a few $100k, is not going to have me searching all over the country for those small extra dollars…
i have nothing against +ve cashflow properties, but the IRR must stack up, and choosing between both properties is a hard choice, but i am very sure i have made the correct and right choices, and have always used the importancy of IRRs and growth vs cashflow….
but with my parting words…
“Quality Investment Property” that have an IRR, that will stack and prove to have growth and can still be funded… are always going to be a better deal even, when the money gets tight.
Cheers,
sisHey Chan,
dont know what happened, there, but for some reason, if i write a long post, its splitting it into smaller parts…
… i dont mean this to be anything against anyone, but +ve cashflow properties that have low returns or that have no growth are just not worth, the waste of time and effort for such a small return…
as long as the IRR stacks up on a +ve cashflow property, then you should really consider it…
Cheers,
sisyack,
It’s one of the reasons I think property is so much *safer* than shares. Basically, you could buy into a company, and not really know what’s going on internally, and the coy could close down, and you’ve had it. Even buying into the cochlear ear could be risky if it ends up killing someone. Remember the old silicon breast implant? You would have been a boob to buy into those.
I think buying into a flatter market means most people will be expecting *less* CG, but not NO CG. The article someone posted today suggests people buy into more CF+ properties- focus on rental yield rather than neg gearing for CG. That seems to make sense, economically.
People will either continue to do what they do, or may change strategies to deal with different market conditions. There’s no shame in changing strategies. Why be bullish in a bear [mickey] market?
kay henry
Hey SIS, how ya going?
Since Kay bought up a Bear market, I thought I would put in a Bears word……….LOL
I actually totally agree with what u say SIS, But I also believe that +ve properties is the only way some people can actually break into the RE game/market. As they grow they can then modify their strategies, but for instance why even try to -VE when you’re not even earning enough money to pay tax in the first place? Get my drift?
Regards Bear
POSITVE CASHFLOW properties and Joint Ventures available!
For the BEST deals register via E-mail [email protected]
DONT MISS OUT!!!!!
You must be logged in to reply to this topic. If you don't have an account, you can register here.
