Where are areas that one could still find positively geared properties in Australia or New Zeland? Anyone?
Hi Dheraj
Welcome to the forum.
Might be best to have a read through this thread that keeps popping up – https://www.propertyinvesting.com/forums/property-investing/help-needed/22508
Cheers
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hate to sound biased but the best way to find positive geared properties is using Real Estate Investar. I just performed 2 searches, 1 with a minimum rental yield of 8% returning 94 results and the 2nd with a minimum of 9% yield, returning 32 results. Even with an 8% rental yield you are doing well.
These searches combined took me less than 10 minutes and these searches were only in Oz. Real Estate Investar also allows you to search in NZ.
One thing to remember is that +ve geared properties are not your normal 3×2 houses in any capital city. They are often located in rural towns, mining towns or places you wouldn't go, even if someone paid you. You have to be prepared to invest in towns you may never have heard of if buying +ve geared properties is the strategy you want to pursue. But no one strategy is better than than the others, it all depends on what suits you best.
If you have a vision or dream then go for it and dont let anybody tell you otherwise.
Corie
Corie wrote:Hate to sound biased but the best way to find positive geared properties is using Real Estate Investar. I just performed 2 searches, 1 with a minimum rental yield of 8% returning 94 results and the 2nd with a minimum of 9% yield, returning 32 results. Even with an 8% rental yield you are doing well.These searches combined took me less than 10 minutes and these searches were only in Oz. Real Estate Investar also allows you to search in NZ.
One thing to remember is that +ve geared properties are not your normal 3×2 houses in any capital city. They are often located in rural towns, mining towns or places you wouldn't go, even if someone paid you. You have to be prepared to invest in towns you may never have heard of if buying +ve geared properties is the strategy you want to pursue. But no one strategy is better than than the others, it all depends on what suits you best.
If you have a vision or dream then go for it and dont let anybody tell you otherwise.
Corie
How biased of you!
You don't HAVE to buy in rural areas. You just need to buy under market value or value add. And it CAN be a normal 3×2 in any capital city.
haha…….Yes I am biased but that's because I know how good the REI(Real Estate Investar) tools work and how much time they can save you!
You are right, you dont have to buy in rural areas but the problem with finding +ve geared property in a capital city is that it takes a lot more time and your negotiation skills have to quite sharp. Same with adding value, it takes time, and money to get that rent up to a level that makes it CF+. How many many minutes, days, weeks, will it take you to find a +ve geared property in a capital city? I can find over 50 in a matter of minutes that are CF+ right from the word go.
Investar was designed to save people time and for those that may be time poor.
Buying CF+ in rural towns worked for one guy named Steve McKnight. You might have heard of him.
Corie
As stated above the number of these properties that make good overall investments have diminished over the years but they are out there.
The key issue for me is the property still needs to be fundamentally solid – even Steve mentioned this in his first book.
While getting cashflow suits a cashflow investor six years ago (or so) there were herds of people buying property here, there and everywhere just because it met the 11sec test. This led to a number of people buying property in very remote and, what I would call, unsuitable, locations. Remember underlying fundamentals remain important.
Key is you may need to look a little further afield if you want an 'off the shelf' property which is cashflow positive.
PS Just looking at something that looks like meeting both of these criteria at the moment.
It is possible to get positively geared properties in capital cities, but you cant just go to the "Positivley Geared Property" shop and buy one. You need to create one by doing something out of the oridinary to bring the property up to its highest and best use- then you can gain maximum returns from the property and make it positively geared.
Luke.
I would rather just go to the "Positively Geared Property" shop and buy one. Much easier!
I looked in the yellow pages for the store, but no luck. Will let you know when I find it.
luke86 wrote:It is possible to get positively geared properties in capital cities, but you cant just go to the "Positivley Geared Property" shop and buy one. You need to create one by doing something out of the oridinary to bring the property up to its highest and best use- then you can gain maximum returns from the property and make it positively geared.Luke.
[/Luke makes a very good point, to obtain positive cashflow in the city needs some creative thinking. One strategy that i have seen used successfully, (by my partner's father) is create as many incomes as possible from the property. things suchs as converting a bungalow into a self-contained flat, or splitting a 2storey house and renting out the top and bottom levels seperating are ways positve cashflow has been achieved by receiving more rent]
One strategy that i have seen used successfully, (by my partner's father) is create as many incomes as possible from the property. things suchs as converting a bungalow into a self-contained flat, or splitting a 2storey house and renting out the top and bottom levels seperating are ways positve cashflow has been achieved by receiving more rent
<moderator: delete advertising>
Corie wrote:One strategy that i have seen used successfully, (by my partner's father) is create as many incomes as possible from the property. things suchs as converting a bungalow into a self-contained flat, or splitting a 2storey house and renting out the top and bottom levels seperating are ways positve cashflow has been achieved by receiving more rent<moderator: delete advertising>Yep, agree with Corie on that one. Sometimes it just takes a bit of creativity to bolster the income a property derives. Cheers Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Corie wrote:haha…….Yes I am biased but that's because I know how good the REI(Real Estate Investar) tools work and how much time they can save you!You are right, you dont have to buy in rural areas but the problem with finding +ve geared property in a capital city is that it takes a lot more time and your negotiation skills have to quite sharp. Same with adding value, it takes time, and money to get that rent up to a level that makes it CF+. How many many minutes, days, weeks, will it take you to find a +ve geared property in a capital city? I can find over 50 in a matter of minutes that are CF+ right from the word go.
Investar was designed to save people time and for those that may be time poor.
Buying CF+ in rural towns worked for one guy named Steve McKnight. You might have heard of him.
Corie
I agree with the site being good. I have used it. It does narrow down your search and finds properties you wouldn't find on RE.com.
True it's not easy. If it was everyone would have a dozen properties. Less than 5% of the population own one.Corie wrote:I would rather just go to the "Positively Geared Property" shop and buy one. Much easier!Yep sounds easy but getting a few properties that give you $20 a week in your pocket but with no capital growth won't set you on a path to wealth. I'm thinking it's not a good idea to encourage newbies to go out and buy any positively geared property off your website.
Derek wrote:As stated above the number of these properties that make good overall investments have diminished over the years but they are out there.The key issue for me is the property still needs to be fundamentally solid – even Steve mentioned this in his first book.
While getting cashflow suits a cashflow investor six years ago (or so) there were herds of people buying property here, there and everywhere just because it met the 11sec test. This led to a number of people buying property in very remote and, what I would call, unsuitable, locations. Remember underlying fundamentals remain important.
Key is you may need to look a little further afield if you want an 'off the shelf' property which is cashflow positive.
PS Just looking at something that looks like meeting both of these criteria at the moment.
Exactly!!! good points.
If you were to buy ten cash flow or neutral properties in regional areas that put $20 in your pocket a week then long term they won’t make as much as city dwellings but after 10-20 years of holding they still will have at least doubled in value and the rents will have doubled too. If you have not much money to deal with at the beginning it’s better to have half of something as opposed to all of nothing.
I totally agree with Pullright. There is nothing wrong with buying regional/rural towns if that is the only way you can afford to get into the market. Its is also unrealistic to say believe that you will not see any capital growth in regional areas. There is plenty of data to support the fact that, sometimes regional areas can out perform capital cities in terms of capital growth. You just have to do your research and choose wisely.
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