Hello
This is a request to anyone who thinks they have recently (last 12 months) bought a good +ve c/f property. I would like to get the location and the details so that I know what one looks like and where abouts it is. Many thanks,
Dan[biggrin]
No! Last one I bought was eight years ago, the market now is such that you need to get creative to achieve a positive cash flow situation.
We achieve this by buying good properties in growth areas and using strategies such as lease options or multi-tenancies to increase the cash flow. Both of these methods are described in detail on my website (too long to repeat here).Developing or subdividing can also achieve positive cash flow.
Buying positive cash flow in rural areas is high risk! If there is no growth and just cash flow you are left exosed to debt. I run not walk away from these type of deals. [biggrin] but that’s just me!
Investment Property Management
http://www.adprop.com.auThe truth of the matter is that there are few truly cash flow positive unless you luck onto somthing. Resource rich areas have clicked and so has Perth but where to now? You can ‘renovate’ but you are contributing your labour to the process. At the moment the bank will pay you around 6% in an ordinary account so you would have to see a lot of promise in any ‘renovator’.
also are you taking into consideration, rates, insurance, real estate fees, water, ect.
A good return is soon eaten away by this. Hard to get a positive one with all these costs.Originally posted by Dr.X:Both of these methods are described in detail on my website (too long to repeat here).
Looks like your explanations aren’t on your site either…pages under development [confused2]
Originally posted by Pizang:This is a request to anyone who thinks they have recently (last 12 months) bought a good +ve c/f property. I would like to get the location and the details so that I know what one looks like and where abouts it is.
I’m sure you would Dan…..but I’d be surprised if anyone is going to go into that much detail.
Our group bought two of them last year, one doing 4.5% gross yield when we bought it, and 12 months later is now doing 10.2% nett. The other was doing 6.5% gross, and we turned it around to be doing 7.5% nett in 4 months.
Both were shocking condition, truly horrible properties that no-one wanted to touch with a barge pole….and believe me, you needed a pretty decent barge pole to touch them.
If you are looking for a nice little 3 bedroom house with white curtains, listed on some REA internet display, and a tenant in place paying 12% gross, enough to pay all of your holding costs and outgoings and still have some left over to pop into your pocket to fund your private lifestyle…..well then you may be looking for a tad bit longer.
I seriously have some land on the moon for sale. PM me if your are interested. Returns are 0% but think of its future value!
Nice going DLPP! Wow, Was it in NZ? Double Wow! Could you find one for me,too? You seem to be in the business of bird dogging, so maybe we might take your comments with that in mind! I wonder why you are still working if it is all that easy???
Originally posted by magnetman:Originally posted by Dr.X:Both of these methods are described in detail on my website (too long to repeat here).
Looks like your explanations aren’t on your site either…pages under development [confused2]
It’s up and running now [biggrin]
Investment Property Management
http://www.adprop.com.auWhoops, I can’t get it for some reason – “Still being developed”
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional.
Great achievement DLPP. We have similar goals re trying to get away from the rat race and are on the hunt for our first IP.
What state was the recent purchase and is it near a capital city or developing town?
Don & Liz, I take my hat off to your achievements. You have the foresight and intuition to take actions. I’m too cautious but I’ve learnt a lot in the past months.
I thought Marsden’s was just being curious, not being antangonistic at all, as we’re all here to learn from success stories we found so inspiring.
I’ve talked with people in the buyer’s advocate business (bird dogging), they seemed coy when asked about finding such deals.
Isn’t it not surpirsing that we find it a glaring conflict of interest using this type of service? Mainly keeping the best deal for oneself rather than the client. The onus is on the client’s dd and therefore it’s still a booming business as usual for the smarties.
CT
Hi Pizang
There are still properties in country WA, in small farming towns, you generally only get a 2 or 3 bedroom fibro home and they can be a little hard to rent at times. I have in the process of settling on a property in Newman WA, bought it for $125,000 in Nov 04, at $400 p/wk rent and currently selling it back to the company i bought it off for$375,000, current rent $500 p/wk.
Western Australia mining towns have become negative geared, as price increases have outstripped rent increases. You can accquire positive cash flow properties through http://www.positiverealestate.com, i am in process of settling on a commercial property (fibro cottage) in Bourke, purchase price $95,000, rent $250 p/wk, 3+3 year lease.
Many promoters advertise positive, but it is only after depreciation, depending on deposit and tax variation or personal tax bracket that makes them positive.
Regards
Wayne
Hi Dan
I run a buyers agency in South Australia that looks for positive cash flow properties all over Australia.
I personally have bought 10 properties in the last year but I am doing so in the knowledge that I may not get any capital gain as they are largely in rural areas, although I have by accident got some good capital growth.
Thanks
SimonOriginally posted by swiftos:Hi Dan
I run a buyers agency in South Australia that looks for positive cash flow properties all over Australia.
I personally have bought 10 properties in the last year but I am doing so in the knowledge that I may not get any capital gain as they are largely in rural areas, although I have by accident got some good capital growth.
Thanks
SimonThanks for that Simon; gives us all more confidence. Personally, I don’t mind cheaper, high rent return properties as I can buy more without sacrificing my dollars. Who wants to have to keep working to service n/g property? I want to get out of the rat-race asap and let the properties pay me (nearly there).
My only fear with ‘rural’ areas is the (perceived) lack of tenants in these areas. What is your experience with that? I have until now stuck to more ‘regional’ areas; bigger populations, but not cities.Cheers,
Marc.
[email protected]Thanks Simon,
Would you be interested in perhaps providing the details of those properties for publication in a magazine?
Dan
Just a slow response to DLPP who seemed to be a touch sensitive to my reply! I was curious as to what you had on the go but have decided that you are probably selling ‘cash flo positives’ to buyers for a commission or somthing like that! Yes or No? If you are, I was curious as to whether you retained the best deals for yourself or do you selflessly pass them on to customers. I guess I was also saying that, in my opinion, cash flow positive are, at the present time, rare possibilities!
I also think that some liberties are taken with the definition of a cash flow property and those “finding/selling’ them should clarify what they think is cash flow positive.Hi Marc
as promised by email here is my forum reply.
Rural areas are only as good as the tenants and the industries in the town.
You really need to talk to an agent that is local to find out what true vacancy rates are and real rental demand. I often ask for rental lists and leases (with no names, just properties and prices) to be sent to me to confirm rents are in line with quotes.
As for rural areas, there are often great leases to be found as there are often key govt. departments that lease for a long time (in WA for example there are GEHA leases) and also in smaller transient towns people often rent as they may not be willing to buy if they will be there for only a short period.
For my criteria in researching I would look into rental history, what key shopping amenities are in town, eg. Woolworths or key take away and what industries are in the town. eg, mining etc.
Check out council websites as they provide a lot of information.
Hope it helps
Simon Swift
[email protected]
0423 052 513Thanks for that Simon; gives us all more confidence. Personally, I don’t mind cheaper, high rent return properties as I can buy more without sacrificing my dollars. Who wants to have to keep working to service n/g property? I want to get out of the rat-race asap and let the properties pay me (nearly there).
My only fear with ‘rural’ areas is the (perceived) lack of tenants in these areas. What is your experience with that? I have until now stuck to more ‘regional’ areas; bigger populations, but not cities.Cheers,
Marc.
[email protected]
[/quote]Errr……Thanks, anyway?????
You must be logged in to reply to this topic. If you don't have an account, you can register here.
