I have been investing for over 12 years however my strategy has always been slow and steady. I am now on a mission to learn as much as possible and am only looking to acquire property that results in positive cashflow from date of settlement. I am struggling to find that where I live (Townsville, QLD). Any assistance would be greatly appreciated!
Regional, Hobart and the outer suburbs of Adelaide are the main picking grounds for CF+ properties in Australia. There have occasionally been properties which have been CF+ when Brisbane bottomed in prices, but that’s changed in the last two years.
Areas like Elizabeth SA, Wagga Wagga NSW, Orange NSW you’ll find reasonable cash flow.
Keep in mind that you don’t want to buy a cash flow property at the expense of any capital growth, else you will limit your ability to grow your portfolio in the long term, or enjoy strong growth in rents etc. Regionals are more likely to have limitations in CG due to weaker demand and huge supply availability is council/shires adjust their urban boundaries to allow for growth.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Hi Kylie,
Here are a couple of links that may be useful to you. This first one is of a young bloke who concentrated on positive geared IPs from the get-go (started just 4 years ago) :-
https://www.propertyinvesting.com/topic/4410441-thankyou-steve-mcknight/The next one is a generic thread with a roll-up of useful information re finding positive geared IPs :-
https://www.propertyinvesting.com/topic/4384472-answers-to-where-to-find-cf-deals/Note the older dates on the latter link – not to scare you, but just so you can see these ideas still work today.
Benny
Hi Corey
Thank you so much for your prompt reply. I do agree about the sacrifice of CG in regional areas. We have 2 properties in a regional area that provide positive cashflow but the forecast for CG is minimal. I am currently trying to work out alternative ways to move the properties and maximise our return, ie Lease options, Seller finance??
Will definitely be cautious in relation to acquiring too many more in a regional area. The idea of both Hobart & Adelaide however may be worth doing some research on.
Thank you again for your response, I really appreciate it!
Hi Benny
Thank you for the POSITIVE links :) I really appreciate your help!
Kylie
Outer areas of Adelaide to both the north and the south may be cashflow positive. Look at Elizabeth, Smithfield and Craigmore in the north and Christie Downs, Morphett Vale and Hackham in the south.
Be aware that the trade off to yield is often lower socio economic. This is where you need a good Property Manager who has experience dealing with this type of property.
D.T. | DT Property Management
http://www.dtproperty.com.au
Email Me | Phone MeAdelaide Property Management - whole Adelaide metro
Kylie, I believe we met on the weekend!
Anyone else in Townsville welcome to join us when ever we get together.Adrian Cahill | AdrianCahill.com Personal Development Expert
http://adriancahill.com/from-investor-to-coach/
Email Me | Phone MeHere since 2002, however things have evolved over the years.
As others have stated Regional would be your best bet for cash flow. Could squeeze some CG out with a renovation. Bathurst, Albury, wagga wagga and everyones favourite broken hill.
Tony Fleming | Triumphant Property Group
http://www.triumphantpropertygroup.com.au
Email MeNSW Buyer's Agent specialising in Western Sydney-Blue Mountains-Orange-Albury
@kylie74 If you understand the local markets there are +cf properties in the major regionals along the QLD coast – with the advantage you could renovate if required.
You obviously need to review your own goals first, then your strategy, then buying criteria, and to be honest I think its a little early for a wholesale market improvement in some of these towns, but hey you asked.
http://www.realestate.com.au/property-house-qld-bundaberg+north-121229406
http://www.domain.com.au/maryborough-qld-4650-2012292164etc etc (please note I am not advocating these are great markets or great properties or that I have even seen them in person – I am not spruiking business) just suggesting given your location you might find something along your stretch.
Here is a recent client deal in another market with the same basic criteria, it will require 3x cosmetic reno to be +cf but will be around 7.8% on all inclusive total cost base when those are done.
http://www.realestate.com.au/property-unitblock-nsw-malua+bay-121554110For, when looking for cashflow plus less risk of zero capital gains I like to try for lower vacancy rates, coastal if possible or at least somewhere people have a reason to move to, counter cyclical is fine, & properties with renovations or value adds or with development potential. That way the risk of getting NO growth over say 10 yrs is much lessened. Buy the problem, sell the solution.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
You must be logged in to reply to this topic. If you don't have an account, you can register here.
