I am only young and own an investment property that is now in a posative cash flow situation (just). However this has taken years to achieve. I am looking to buy another property at the end of this year, if all goes well. But if a house is worth eg $330 000, the morgage repayments on that money is about $531 per week. There is no way that you can charge a tennant $530 per week for a $330 000 property. How can I invest in a property that creates a posative cash flow.
Tks
Daniel
Time and wise investing Daniel.
it is never easy when you first purchase particularly with interest rates the way they are but we simply have to do what you have already done. wait until the rent increase past the cost.
There is no easy solution to this if we could all go out and buy ready made positively geared properties we would all own thousands of them.
all i can say is ensure you do your research and then go fishing for a couple of years while you wait.
cheersThey are still around, you just have to be a little creative in where you look for them.
Look for migrating populations on the upswing.
You can even occassionally find them in major cities though not often.
WIth such a 'rental shortage' why cant you just increase the rent? Supply v demand surely would allow this?
G'day Daniel,
Have you considered any of the following options?
1. Using a Line of Credit to fund the cashflow shortfall – would need to invest in capital growth areas for this to be
viable.
2. Using a Cashflow Loan – reduced interest during the first few years.
3. Commercial Property – Higher deposit required however, still possible under $350,000 & be Cashflow+ve
4. Adding value to residential properties & selling or using equity increase as cashflow.Educating yourself is the best bet going forward. These strategies can be very effective (or dangerous) if the proper risk management strategies are not in place. Buying properties and waiting for growth could make you rich – it may just take 20 years or so.
Chris White | Pillar Property
http://www.pillarproperty.com.au/
Email Me | Phone MeThe Property Investment Specialists
You must be logged in to reply to this topic. If you don't have an account, you can register here.
