Tag Archives: positive cash flow

How to Find Positive Cash Flow Properties?

Which property investing strategy do you focus on as an investor?

What if you’re starting out or you’re a more experienced property investor wanting to accelerate the growth of your property portfolio? Do you use a positive cashflow property investment strategy? Why positive cash flow properties?

Firstly a positive cashflow property investment strategy is one where the rental income from property exceeds all costs of ownership, including interest, council rates, insurance, property management and any other holding costs.

In other words, positive cash flow properties can actually put money in your pocket each month and as a result is paying you to hold the property. Get enough properties like this and you could replace your income and retire, if that’s your plan?

Positive cash flow properties sound almost too good to be true, right? Many property investors can’t believe positive cash flow deals exist in today’s property market. They believe cash flow property can’t be found as property prices went up faster than rents.

positive cashflow property investment strategy
Why positive cashflow property investment strategy?

In fact, great positive cash flow properties can be found right now. If you understand how to look, what to look for and the secret to choosing the right positive cash flow property in the right area, you can get positive cash flow and capital growth in the same time…

Positive cashflow property investment strategy…are you an investor worried about what’s happening to the value of your properties?

Are you stuck or hitting a financial brick wall with you portfolio and can’t seem to move forward?

Fortunately there is a positive cashflow property investment strategy for making significant money which doesn’t rely on market-driven growth for success, and actually allows you to keep borrowing more to get multiple properties.

Understanding how to find and invest in the right kinds of positive cash flow deals allows you to buy literally dozens of properties, and effectively get paid to hold property regardless of what direction the property market goes in today’s property market.

Because in a flat or falling market, which is the market we are in today, do you want to see real-life current market examples of deals where you can buy properties with rental returns above 10 per cent, delivering substantial positive cash flow?

Property Investors Strategy

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P.S. Would you want a massive instant equity gain? How about buying into a fully rented property, which delivers positive cash flow from day one? What if you can even subdivide the property to add more value…

Positive Cashflow Property Investment Strategy

How to Start Your Property Research

Start Your Property Research Now.

 

Property research made easy because there is such a wide range of information available to homebuyers and property investors, but it can be overwhelming if you don’t know where to start…

For example you are confronted by auction clearance rates, vacancy rates, pending building approvals. Not only are all these stats and figures overwhelming, it can confusing for some too. So…would you want to buy a property without proper research?

Property research whether you are purchasing your first home or starting an investment portfolio, the traditional methods of research such as websites, magazines, news reports and company announcements are always a good place to start.

However, the property research you need to do varies, depending on your end goal and/or profit targets.

If you are looking for your primary place of residence, factors such as proximity to family and friends, layout and design and overall feel have a major effect on the area and property you choose.

What if you are purchasing an investment property?

Your property research would focus less on personal preferences and more on what adds value and maximises the cash-on-cash return for your investment.

You want to consider a rental yield of 9% or higher because you are basing your research on how much this suburb has risen in value historically, and whether there is a potential uplift to add value through a renovation or the property meets requirements of tenants.

property research
Property research because searching is not the same as researching…

There are four key factors which you want to consider when starting your property investment research.

Property research for location: In particular, you want to consider the proximity of your property to public transport, schools and employment opportunities.

Areas in close proximity to the CBD in major cities have a real advantage when you consider the above factors. However, if you want to enter these areas today, you need to pay a premium and of course this depends on your financial circumstances.

Property research infrastructure: If the well-developed areas near major cities are out of your price range, you need to make special consideration for current and future infrastructure which may make an outer ring suburb more accessible in the future.

If you can ideally select these suburbs early, you would be able to snag a bargain and see significant increases in value (capital growth) as the infrastructure develops…

It’s easy to assume capital growth and decline looking at median price of a suburb alone, however it’s not accurate. There are sub markets within a city and even in a suburb, individual properties can attract different levels of demand.

Property research affordability: There are two key considerations to look at. Firstly, you need to sit down and work out how much you can afford to spend on your investment property, taking into account stamp duty, legal fees and property management fees.

Secondly, you need to consider the demographics of the area you are purchasing in and decide whether your target market (potential tenants) would be able to afford the rent you hope to achieve.

Even when median prices are falling, there are pockets of opportunity in each city which bucks the trend. The same applies in growth cites as not all suburbs perform the same way. In fact, each suburb behaves like a mini-housing market according to its own dynamics.

Finding suburbs with potential for price growth may not even be your primary goal, especially if you’re thinking of buying your first investment property and don’t know where to start?

What if you are an experienced investor motivated to avoid repeating past mistakes?

Property research because you need to avoid the persuasive high rental yield areas caused by falling prices, suburbs where prices peaked and are just about to crash. These locations have rising rental vacancies and of course leave you short on rental income.

The best property investments are found where the rent more than covers all outgoings, including your loan repayments from day one and local property market has power to provide rent increases and price growth.

Perhaps you don’t have time or resources to do due diligence and analysis to locate these hidden suburbs, so where can you find them?

Property research, there are a number of amazing resources available to property investors and homebuyers looking to enter the property market, so you don’t want to limit yourself to only researching via online resources.

An experienced team of experts can be worth their weight in gold throughout your property investment journey. If you would like more ways to ensure the success of your property research or information on how to begin you research, contact us today using the form below…

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Property Research