So I was doing some research while I was reading Micheal Yardney’s book, he mentioned rental market data. So basically you type in suburb name then rental market data. It takes you to the realestate.com.au website, but most areas seem to have negative cash flow it is estimated. How accurate do you think this is?
If you are looking Sydney, Melbourne or Perth that sounds about right with the current market in regards to negative cash flow. Adelaide, Brisbane, regional hubs and Hobart are better picks if you are looking for cash flow? Is this the strategy you are interested in?
If so a quick little cash flow trick I use to scan for cash flow for clients and myself is the purchase price minus the last 3 digits and if the rent is $65 more it should be + cash flow with current interest rates. So for example a $300,000 house renting for $365 would be positive with a 20% deposit. Just makes scanning the hundreds of ads easier.
Just remember you won’t be able to build a strong portfolio without equity so don’t just look for cash flow positive properties.
-
This reply was modified 7 years, 4 months ago by Tony Fleming.
Tony Fleming | Triumphant Property Group
http://www.triumphantpropertygroup.com.au
Email MeNSW Buyer's Agent specialising in Western Sydney-Blue Mountains-Orange-Albury
Ah ok thanks, I am looking in Sydney. I was actually reading a book before and it said don’t focus on the cash flow from the rent. Building the value of the property is better more important it will build bigger equity. So yeah you are right, but I don’t know how long this negative cash flow will last. I could negatively gear I guess, I got no choice if I invest in Sydney. Don’t know how comfortable I am with negative gearing especially as a beginner.
Ah ok thanks, I am looking in Sydney. I was actually reading a book before and it said don’t focus on the cash flow from the rent. Building the value of the property is better more important it will build bigger equity. So yeah you are right, but I don’t know how long this negative cash flow will last. I could negatively gear I guess, I got no choice if I invest in Sydney. Don’t know how comfortable I am with negative gearing especially as a beginner.
It all depends on your strategy but negative gearing isn’t the best strategy especially in a city which has just experienced mega growth. You will be buying an asset at the top of the market with low yield. Having said that if you are looking for a long term play it has some merit as the Western Sydney second airport and job hubs will increase demand.
There is a lot of infrastructure planned for West, South West and North West so if you are looking I would look there but it maybe a few years
Tony Fleming | Triumphant Property Group
http://www.triumphantpropertygroup.com.au
Email MeNSW Buyer's Agent specialising in Western Sydney-Blue Mountains-Orange-Albury
Mate I have redefined my whole process recently based on the Binvested/Nathan Birch approach.
Not that I was doing anything wrong, but after doing this Im finding deals where the rent is double (yes I am serious) the value
so Im looking at 10% returns, which isnt easy but its real and there.plus I have been hitting areas I see that are due for growth.
So yes 100% there are lots and lots of positive options.
for e.g. a commercial property on the Gold Coast where I am for $200,000 35 per week BC
rents for $480.11% return, 250 after P and I loan at 20% (40% due to commercial loan) but you get the point
Jaxon | Jaxon Avery – Financial Adviser
http://www.jpafinancialservices.com.au
Email Me | Phone MeJPA Financial Services Pty Ltd
Ah ok I am aware that properties are pretty expensive as of now, and that airport is being built. I believe in black town. So I guess it would make more sense to invest in a property outside of sydney possible melbourne or queensland?
-
This reply was modified 7 years, 4 months ago by
You must be logged in to reply to this topic. If you don't have an account, you can register here.
