Hello, just signed on and new to the "positive cash flow 'property game. I am looking at using my super funds to purchase a property or properties in Sydney. I am keen to find a cash positive invesstment/s and was wondering hopw many people out there actually have mulyiple properties in a cash positive position and how dod they do it . I have up to 300 k in funds that I can use and am looking for some direction on the best way forward …Hope you can help
Regards
BillBill .. if you are looking for exclusively cash flow postive properties in the current market you are looking for a very generous upside. Most places at the moment are trending towards the mid 4% or less .. requiring a 4% improvement margin just to create a positive cashflow. Thats if you are working with capital cities. If you head to country areas .. you can go as high as 11% but it comes with proportionate risk. The correct approach however would be learning how to alleviate or minimise the risk components involved to produce a better outcome.
So the ultimate answer I can give you for the moment, read some good books (there is these couple from a guy called Steve) on how to find .. procure .. manage .. and profit from property. I think the idea you have of just waltzing into a positively geared investment is a recipe for future disasters. Learn your trade and then profit from it. And even in the current market there are hot deals to be made. I have just picked up a block of four properties returning 8.4% gross. Which means after my 20% is factored in, they are totally postively geared. But i spent two months learning the area .. the risks and the benefits. I got the local paper, talked to several agents to understand the market, then went off to talk to a couple of the locals. By the time I laid down my hardearned, the strategy for owning the property was already confirmed.
The correct answer is read. Lots, and as quickly as possible.
Hi Drew, thanks for taking the time to comment. I understand the need for research and am serioulsy considering commissioning a 3rd party to find , analyse and negotaite on my behalf. I have a fair idea as to where I should be looking in Sydney. I guess the grey area for me is do I pump a large deposit on one unit or do I spread the deposit over say 2-3. Is it better to go for say one unit around 700k with a large deposit or 2 units between 450-500 with a modest deposit, keeping in mind I am also using my 9% superannuation contribution in the repayments. So I guess to some degree the unit/s arent really cash positive in their own right
trust that makes sense
Bill remember if you purchase 2 individual properties you will need to set up 2 separate Bear Trusts.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
thanks for your input Qld,although I have been told a company trust will overcome the need for two bear trusts
Hi Bill
Welcome to the forum.
Xdrew has provided some excellent comments. Some additional reading recommendations can be found in this thread – https://www.propertyinvesting.com/forums/community/heads-up/6845
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]
Hi Bill regretfully not.
A separate Trust is required and most lenders require a Corporate Trustee anyway.
Cheers
Yours in Finance
Richard Taylor | Australia's leading private lender
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