Dear all, after reading Steve’s book in 1 day I have started to look for positive CF properties online. I have not found a single property in NSW that would qualify when considering interest only mortgage costs, body corporate fees and agency fees. I really checked 100s of properties also in rural areas and didn’t find one CF positive. Am I missing something or is everybody on this forum looking for the only 2 CF positive properties existing in NSW?
I appreciate every comment.
Regards,
JG[blink]Welcome aboard! a little advice, once a property hits the news paper its too late. The key to this game is to have your realtors call you before they list, knowing full well that you are ready and able to buy. Good luck!
Ditto once a strategy gets into popular circulation via a book & media publicity it’s close to too late
Cheers,
Aceyducey
In theory, there is no difference between theory and practice. But, in practice, there is.– Jan L.A. van de Snepscheut
Agree with the other guys to an extent, but even still it isn’t easy to find them in NSW. Question is, why are you restricting yourself to NSW? Aside from anything else, the land tax and exit stamp duty make it pretty unattractive. Try look a little furthur a field.
Dan.
Looking for positively geared property? Check out http://www.positivelygeared.com.au
There are still +cashflow properties available in
Tasmania, mainly commercial returning 7.5-8.5% net.and yes there is growth in Tasmania the median price for property in Devonport has increased an average 8.9% compound for the last 21 years. Happy HuntingAlways have cashflow positive Tasmanian commercial properties
availableJG,
There are still properties on the net for $50k in rural areas. Whether they achieve near to $100 bucks is another thing..
The boom hasn’t hit parts of NSW- many of the really rural areas. Rates for some of these houses are less than $600 a year.
kay henry
JG,
It’s not true when you said you can’t find any +cf in NSW, I just found one on 9th August 2004. See below:
====================================================
Purchase price $63,000
Rent per week $150The property is a 3 bedroom 1 bathroom house in reasonable good condition set on a 1400sqm approx block of land. Construction is fibro cladding on hardwood stumps with corrugated iron roofing. The bathrooms and bedrooms are in good condition, the carpets are quite worn, outside the house is in good condition. Parking is provided by an open carport that fits 2, also there is a garage/workshop that can be utilized and is in good condition. The property is approx 35 yrs old, has fully ducted air-conditioning and a tile fire place in the lounge room. Floor coverings are carpet throughout with nice timber floors underneath. Dimensions of the zinculumn shed is approx 6m x 9m. The backyard is well fenced and has a separate area for a vegetable garden and shade house.
Location: The property is located in a good area of the town, near a service station. Shops are across the road and 3 blocks to the supermarket. Schools are 4 blocks away, primary school approx 1km. population of the town is approx 3958. hospital is 1.5km, banks 2.5km. Located 789 km north west of Sydney, Bourke is situated on the Darling River 110 m above sea level. It is, by any measure, a thriving country town with a sense of prosperity which is the result of its geographic importance as the centre of a large wool, cotton and citrus area.
Tenancy: The property is currently tenanted under an informal lease agreement @ $150p/w. the towns vacancy rate for nice rentable properties is between 1 – 3 weeks. A formal lease can be arranged.
=============================================================So there are +cf property out there. It does not matter which state. Your hard work will pay off, that if you look hard enough….no one will help you looking for property you want except yourself.
There are many way too look for +cf, think outside the square is my suggestion….
Kind regards
Jet Dollars
“Ask and you will receive. Seek and you will find; knock, and it will be opened to you.”Hi JetDollars,
I must admit, your last few posts re: finding CF+ properties have intrigued me. Time to get off my rear and really start looking [evo]
Humboldt
THERE OUT THERE……..
Well I just picked up a 2-bedroom property YESTURDAY in Victoria for $47,000 with a current rental level of $90 p/week and once I add a little paint and carpet it should hit close to $100
Stay positive they are there….
Pete
…Beware of the dreamtakers…
Hey Willi,
I saw your new deal, and it looks great!!! Thanks for the PM… It looks in fantastic condition already. You have inspired me to start looking for some similar deals.
The deals ARE still out there for those who have the right mindset.
It is fantastic to see you on the forums again…
Keep it up, we all miss you…[biggrin]JG,
I agree with Dantheman about investing in NSW.. It is very difficult (BUT NOT IMPOSSIBLE) to locate CF+ deals in NSW without looking in ghost towns. Because of the new exit stamp duty, I won’t be looking there anymore when I can still find great deals in states without the tax.
Regards,
DelHi Jet Dollars,
The property you found sounds like a beauty and is inspiring… thankyou. Could I ask a question (to Jet Dollars or anyone else who has a thought)? I’m unsure how we manage the properties we find in various places. Example, if we have are building up a collection of properties and they need reqular maintenance – repaint, fence repaired, investigate a water leak, wash it after messy tenants etc. Time and travelling to maintain a large group of properties would be significant. Would you try to do that yourself or pay others?
Also, considering the above, would you try to buy certain types of properties to minimise maintenance?
Your thoughts would be much appreciated.
Thankyou.
Regards,
DougOriginally posted by Doug:Hi Jet Dollars,
The property you found sounds like a beauty and is inspiring… thankyou. Could I ask a question (to Jet Dollars or anyone else who has a thought)? I’m unsure how we manage the properties we find in various places. Example, if we have are building up a collection of properties and they need reqular maintenance – repaint, fence repaired, investigate a water leak, wash it after messy tenants etc. Time and travelling to maintain a large group of properties would be significant. Would you try to do that yourself or pay others?Doug,
Those questions above are base on personal choice. It is depend where you purchase your investment property. For me if my investment property is more than 2 hours drive from where I live then I will do all my maintenance through Property Manager, but I build up a team of trademans network where I had direct contact with them if maintenance is require. My network consisting of:
1. Builder for building report
2. Pest inspector for pest inspection and pest control
3. General Trademans for problems such as doors, windows and all the little things
4. Electrician for all electrical problems such as stove, oven, and all general electrical problem
5. Plumber for water related problemsThese people got to be living in the area where my investment property is locate. If problem arise then I contact them and tell them what is the problem and ask them to contact my PM to arrange the job to be done.
I found that if you leave the problems to your PM to do the work for you then it will either take a long time or cost too much, but if you contact the people you know then the process will be much faster because those peopl looking for job and I am giving it to them.
Also, considering the above, would you try to buy certain types of properties to minimise maintenance?Your thoughts would be much appreciated.
Thankyou.The problems with buying certain types of properties is limiting your opportunity to look for all type of property.
I personally looking for all type of property as long as it put money in my pocket. If you had a system in place then you will be fine. Once the problems arise you just act base on your system that you already set up.
Different people will have different way of set up their system which work best for them and you got to have your own system before considering investing in property.
Kind regards
Jet Dollars
“Ask and you will receive. Seek and you will find; knock, and it will be opened to you.”Doug,
I find my cheapest property requires the most maintenance. Cheapest property = cheapest rent, so it’s a bit annoying, because repairs cost the same no matter how much rent one receives.
I prefer properties that are newer, and require less maintenance. They cost more, and the rental yield is less, but the rent goes to my mortgage, rather than going to maintenance.
Your positive sachflow can soon become negative if you are required to undertake a lot of repairs. So a 10%’er can become an 7%’er… I’d rather get the 7%’er to begin with, and have more potential for growth.
kay henry
Is not a better idea to “offload” any poor performing property which is costing you too much???
The last thing you want is a “money pit” constantly draining your funds!!!
Jo
I agree with Monopoly.
Frankly I’m of the view that you should reassess your portfolio every few years & shed the poor performers. Sure they might still make you money, but your dollars can be better invested elsewhere.
Treat them as the cost of learning to be a better investor.
In other words – cut your poor investments & let your good investments run!
Cheers,
Aceyducey
In theory, there is no difference between theory and practice. But, in practice, there is.– Jan L.A. van de Snepscheut
Hi JetDollars,
Sorry for taking a while to reply. Thankyou very much for your thoughts on maintaining properties. Building up a maintenance team seems to be an important part of a larger property portfolio. The rule you have about properties being two hours from your home is interesting… I’ll keep that in mind, thankyou. I’ve done my share of property maintenance/renovation and am conscious of the time it takes. To me this would be one of the most important parts of an investment system to resolve. Again thankyou for your thoughts
Best regards,
DougHi Kay Henry,
Sorry to be slow to reply to your (very interesting) comments. Good point you make that repairs cost the same regardless of the rental of the property
I’d thought about getting 7%ers as you suggest but is it possible to build up a portfolio of properties to replace income? If interest rates are running at about 7% and property is returning 7% property likely to be negative gear unless can make positive with depreciation claim.
I’m just trying to think this through for myself as I would like to purchase properties with aim of creating ‘passive’ income (to replace work salary). Do you think the properties in the 7-8% range (which are certainly out there) could do this?
If you see this post your thoughts would be much appreciated.
Thankyou and regards,
DougDoug,
The 7-8% yield that Kay was talking about is more likely to be a negatively geared property. As I remember Kay is after negative gearing with potential capital grow in the future up to 10 years I believe.
If you want grow as well as cash flow you got to do both. You can buy 1 negative gearing property for every 2-3 positive cash flow properties, but make sure the cash flow of your positive cash flow cover your negative gearing one.
By doing so you have a property portfolio without any cash injection from your pocket. Therefore, if you got say 3 negative gearing properties then in theory you should also have 6-9 positive cash flow properties in your portfolio.
Kind regards
Jet Dollars
“Ask and you will receive. Seek and you will find; knock, and it will be opened to you.”Hi Jet Dollars,
Thankyou for that… my focus is on +ve cashflow so I’ll look for the ones that do that
I like the idea of +ve cashflow properties… many ways to make a $ in property but need free time & cash flowing Kind regards,
Doug
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