Hi Guys,
I’m sure it will be helpful if we could list a bunch of areas where we can look for cash flow positive properties.
I have been looking overseas but feel that maybe I should be looking in Australia.
What about Perth? Has the bubble busted?
What about QLD?
Any comments will be helpful.
Regards
FrankI doubt that you will find a CFP property in Perth. The yields in Perth are generally VERY low because prices have shot up rapidly and it will take quite a while for rents to catch up. I think Perth is one of the most dangerous places to invest at the moment because it has passed Sydney in the affordability rankings, has low yields and is showing strong signs of peaking.
To give you a bit of an idea of where to find CFP properties, I suggest looking around Kalgoorlie in WA or some of the rural or mining areas of QLD.
Todd Burns
http://www.freepropertyhelp.com.auThese days to get great positive cashflow you need to look off shore in places like New Zealand or especially in the United States
Nigel Kibel
http://www.propertyknowhow.com.au
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replying only to the subject topic… cash flow properties are everywhere….most of them are negative
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’
Hi Usi,
Thanks for your reply,
I give up, what do you mean by thinking outside the square?
Please give example.Regards
FrankHi 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!Hi Usi,
Thanks for that,
I am in the process of developing a subdivision but it takes so long.
I think that when I started out I was expecting to have bought 10 properties by now but it has’nt worked out that way just yet.
I have burnt myself out looking for properties.
The subdivision has taken 1 year so far andf I hav’nt started building yet. I think I’m looking for the magic bullet.
Regards
FrankThats absolutely correct you guys cashflow postive properties are everywhere we just have to train our minds to find them and create them from negatively geared properties! Like Steve says you find a property with a problem and fix it!
You might like to cast your eyes on South Australia …. and No I'm not selling property there! (for the sceptics). I've been watching the market in SA and Adelaide is being dubbed 'The New Perth' …. I live in Queensland ….watch the articles currently being written.
The reason for the mini boom in Sa is the Defense Contracts buildign Submarines and the Mining Boom in Northern SA. Subscribe to Lin Andrews Real Estate Newsletter and see what they are saying. You can currently get Cashflow Positive Properties in Roxby Downs and Coober Pedy.
As mentioned above, check out the mining towns in Qld. I have properties in Gladstone, Moura, Biloela and Baralaba, all purchased in the last 6 months, all +ve cashflow, and all with that "potential" to be improved (ie 2 will subdivide, 1 will go dual occ and the other 2 will be reno'd). All multiple industry, multiple mine towns so not entirely dependant on an individual mine (OK maybe that is a bit of a stretch for Baralaba, but it was a "cheapie"). Locals keep saying "you have missed the boom" but with new infrastructure going in, and rents still rising I feel quietly confidant. And hey, as for coal, if petrol keeps rising, we will need electric cars and then go the coal!!!! (obviously NOT an expert opinion…..just tongue in cheek……before I get shot down
)Happy hunting
Mick
Just think outside the square!
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