Do Cashflow Positive Properties Still Exist?
December 16th 2008 04:51
Anyone with an interest in property investing has heard of the positive cashflow properties and how they can supplement your income to give you financial freedom! There are countless books on the topic with stories of how ordinary Australian's have fast tracked their wealth creation through purchasing properties that return them a profit after the financing and maintenance costs. The big question is though, do they still exist in today's market? Cashflow positive properties were in an abundance before and during the boom earlier this decade, but can you still find them now?
Although much harder to find, positive cashflow properties definitely still do exist! They will not always be as straight forward as previous years and may need to be created, rather than bought. For example you can increase the rental yield of a property by making some minor renovations or driving dual income from a property (rent a granny flat out the back separately) etc. These are ways that you could increase the total rent you receive from the property therefore increasing the rental yield. Given the state of the global economy and the fact that banks have cut interest rates to record lows, financing costs are much lower than we have seen in a long time. This, along with strong demand in the rental market is excellent news for investors looking for positive cashflow properties.
For investors with less time or experience on their hands, there still are properties that are cashflow positive when you buy them! This means that they are either already rented, or ready to be rented and will make you a positive return from day one. Given the recent boom early this decade, they are harder to find and generally not in captial cities. There are many highly populated towns that have many unique positive cashflow properties and these areas have strong rental demand! The key is to know your areas - focus on areas that you know have good growth prospects and a strong rental demand. Look for a town or city that has lots of jobs, schools, hospitals etc. Most investors are put off by regional and country areas and tend to focus on areas in or around capital cities. Whilst some of these can make great investments and have good capital growth potential, they generally have a much lower rental yield due to the fact they are much more expensive to buy.
So if you are willing to spend the time doing the research there are still plenty of opportunities for positive cashflow properties. The Australian Property market is full of bargains if you are looking in the right places. Make sure you get in before the next boom and take the next step to financial freedom!
Good luck!
Matt McLean
AUSSIE INVESTMENT PROPERTIES
'Taking the hard work out of finding the best perfoming investment properties in Australia'
aussieinvestmentproperties@ya hoo.com.au
Click Here to For More Info
Although much harder to find, positive cashflow properties definitely still do exist! They will not always be as straight forward as previous years and may need to be created, rather than bought. For example you can increase the rental yield of a property by making some minor renovations or driving dual income from a property (rent a granny flat out the back separately) etc. These are ways that you could increase the total rent you receive from the property therefore increasing the rental yield. Given the state of the global economy and the fact that banks have cut interest rates to record lows, financing costs are much lower than we have seen in a long time. This, along with strong demand in the rental market is excellent news for investors looking for positive cashflow properties.
For investors with less time or experience on their hands, there still are properties that are cashflow positive when you buy them! This means that they are either already rented, or ready to be rented and will make you a positive return from day one. Given the recent boom early this decade, they are harder to find and generally not in captial cities. There are many highly populated towns that have many unique positive cashflow properties and these areas have strong rental demand! The key is to know your areas - focus on areas that you know have good growth prospects and a strong rental demand. Look for a town or city that has lots of jobs, schools, hospitals etc. Most investors are put off by regional and country areas and tend to focus on areas in or around capital cities. Whilst some of these can make great investments and have good capital growth potential, they generally have a much lower rental yield due to the fact they are much more expensive to buy.
So if you are willing to spend the time doing the research there are still plenty of opportunities for positive cashflow properties. The Australian Property market is full of bargains if you are looking in the right places. Make sure you get in before the next boom and take the next step to financial freedom!
Good luck!
Matt McLean
AUSSIE INVESTMENT PROPERTIES
'Taking the hard work out of finding the best perfoming investment properties in Australia'
aussieinvestmentproperties@ya hoo.com.au
Click Here to For More Info
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