Purchase Property With Cashflow Capital Pty Ltd

Hi Everyone,

This is my first post in this forum and would like to ask if anyone has heard or bought any properties with Cashflow Capital Pty Ltd. 

I am looking to purchase an investment property which can give a good rental income and see this company has quite a number of properties which provide good rents which suite my current financial situation. 

Here is the company website http://www.cashflowcapital.com.au/

Thanks in advance and looking forward to hearing from you all for any advice.

Thanks.
D.

Hi D.
Just had a VERY quick look at the site and from what I saw some of them MAY be +ve cashflow.

Be aware of some of these sorts of sites and their quoted returns, sometime they are gross sometimes they are net and sometimes they are just plain overstated.

Run the numbers on them and if they stack up AND they meet your goals of INCOME AND / OR GROWTH then just do it.

I would personally be checking with your accountant if you are unsure yourself how to calculate all this, making sure their numbers stack up, it is quite easy to overstate returns to unsuspecting buyers.

Also to be +ve cashflow they need to return at least 10.4 % or residential.  the commercial nes I looked at meet this on the surface but then I have no idea what the expected yield is for that area for commercial, so you would need to check that also.

Some of these sorts of sites also use the negative gearing depreciation figures to make them look good.  Be aware that if you claim depreciation and then subsequently sell you may be asked by the ATO to pay some or all of that back depending on the timeframe involved and the individual circumstances. This is a little known fact of neg gearing that most do not factor in.

Another issue is that I notice the site does not put down the area their properties are in except for say "country NSW", this could mean a large rural town which has a great population level or it could mean a town with only 500 people in it, thereby making it more difficult to find tenants etc.

In general terms, finding +ve cashflow is more difficult for most in this current market and you may find that "making" something +ve is easier than buying something +ve, ie I'm suggesting developing or renovating here.

It also looks to me like they are offering clients a "One Stop Shop" in terms of financing, conveyancing and tax advice, this may be great alternatively it could tie you up in their knots with overpriced property that is not as highly valued.  Please seek your own independent advice on all these issues.  Personally it smacks of the rorts that were abounding in Qld property years ago where they would fly people up there , give them a weekend in a plush hotel and sign them up with their own accountants, financiers and agents.  The poor unsuspectings then found out a few months later that the property was difficult to rent out and that it was overpriced by some $10k or more.  Please take the issue of Buyer Beware seriously and I'm sure you will find  valuable property that really meets your needs.

Great to see you on the forum, keep on posting
Warm Regards
Sue
Ps if the returns are less than bank rates for Term Depositis / Cahs management accounts why not use them instead, there is a whole lot less risk and headaches in doing that

Run.................. (in the opposite direction). There have been many posts previously (and currently) about CFC and the additional costs (finders fee, unsustainability of rents etc).  Tread carefully. Google Spiro Kladis.

Thanks Sue and Scott for your opinion.