Yep Derek and Den are onto it.
Your wealth is definitely created via the capital growth of a portfolio. But to be able to actually build a large enough portfolio to begin with, and secondly be able to afford to hold it long enough to realise that capital gain – You need to have a positive cashflow over all in your portfolio.
Over the years i…[Read more]
Von Krumm wrote:
Kiwi Property Guy wrote:
I tend to disagree sorry Von.
Yeah leverage is a powerful weapon. Interest rate rises are always a risk.I guess then LVR and liqidity are more important if things go to shiet.
There are ways and means of structuring your debt to minimize the interest rate risk Von. We are all about covering off as…[Read more]
Von Krumm wrote:
Thing is with interest rates going the way they are, you're probably better off putting money in the bank than aiming for a +15% yeild on a CF+ IP.
I tend to disagree sorry Von. Its very hard to buy a $50,000 term deposit for a discount, or hard to polish up $50k in the bank and make it worth $60k
Read one of my recent blog…[Read more]
Von Krumm wrote:
Thanks for your words clint, I believe you have summed up the crux of CF properties vs neg. geared very well.
Kiwi Property Guy wrote:
considering the growth potential of an investment is of course important.
How important is this? If I'm not mistaken housing prices could drop say 10% for instance while rental…[Read more]
In the current market ( and really just to throw in a short commentary and not get to involved) when seeking cashflow it is critical to ask:
1) Is the property CF+ (cashflow positive) because prices are falling in real terms. Are asset values falling adjusted for inflation?
2) Is the property CF + because you have a situation…[Read more]
Hi Guys, its not hard finding the deals in NZ its getting decent finance, I approached a couple of lenders in NZ 2 months ago (Im an Australian citizen) and the best LVR I could get was 70% and on top of that I need X amount of cash in a bank acct there as a security has anyone heard different ??
From our experience…[Read more]
Pretax cashflow $2,020p.a. (at 100% finance)
Pretax cashflow $3,415p.a. (at 100% finance)
Can you please advise on how you calculated the pretax cashflow.
Hey Tommy, sorry for the delayed reply, have been hectic.
We have our own web-based Property Analysis software, that we had created for us called ‘Property Wizard’…[Read more]
I have had several emails from people off the forum asking about the type of deals we are finding here in NZ currently and passing onto our clients.
So for the benefit of others that may also be wondering, here are the numbers from two properties that we have passed onto two different Aussie based clients in the last 10 days.
3 bedroom…[Read more]
hi guys, i came to this post to get information of the latest CF+ locations in australia, can someone update me, instead of going through 20pages of the forum …many thanks.
Hi there shoooshoo,
The highest positive cashflow properties can be found in the most southern states of Australia, New Zealand
Seriously now, we are…[Read more]
What does CF+ properties stand for??
Hi Primrose,It is Cash Flow Positive Properties. Which is a property that generates enough rental income to cover all costs of owning (including mortgage payments) and there is a surplus rental income left over, so in other words, a property that pays you a passive income to own it, even when…[Read more]
Hi All!Yes I do believe that there are +CF properties to be sourced if investors become creative in ways to receiving high yields.I have found a few, but what suits one persons financials does not necessarily suit another.Because i chose to leave work and dedicate my life to purchasing investment properties, I have no choice with…[Read more]
This may sound stupid but what does CF stand for?
Hi Packer,No such thing as a stupid question CF refers to Cash-flow. And when we talk about CF+ or Positive Cash-flow property, we are meaning an investment property generates enough rental income to cover all of the expenses you have as the owner to own it, including the loan…[Read more]
Interesting to read through the posts in this thread.. I have built my portfolio on CF+ properties and live and breath this subject. CF+ with potential growth is what I am interested in right now and in the past I have used Ryder's reports to source good areas. Looking forward to following this thread further.
I prefer 3 sligthly – geared or neutral properties , more dollars worth apreciating. then one grossly neg geared property where you will have to actually go and have to do some work to pay off.
More great advice, buy and hold property investing is all about controlling as large an asset base as possible for as long as possible.
I've done many things in real estate, from passive investing through to active property development and I can say with hand on heart that passive investing is far easier and generally just as profitable over the long run as active development. And if you simply must be a developer (that includes you renovators out there),…[Read more]
Did some quick numbers on James' deal… If you borrowed $198,000 (using equity in another property), if you could borrow at 7% it would cost you $266.54 to pay interest only. Is the rent $390 for each unit? If so, $390 – $266 – $160 outgoings comes to a loss of $36 pw. Does the outgoings include strata fees? Of course, if you…[Read more]
ozharp,if that's want you really want , then go for it..! there's nothing wrong with your decision for new zealand is a nice place to live in..i have some info here..hope it can help youNew Zealand's Tax Regime for Property Investment. New Zealand has no sales tax on property or mortgage transactions. The only direct prope…[Read more]
Just a quick update on the Market here in NZ.Many investors have been holding off, sitting on their hands for the last few months, waiting to see what our GOVT sprung on us in the way of proposed changes to the tax rules on rental property. There were a few nasty proposals being thrown around, IE the introduction of a capital gains tax, or the…[Read more]
G'Day All, I am a newbie, I have just finished the book 0 – 130 properties. I just need to confirm my own thinking. I own a property in Townsville, bought in late 2003 and lived in as primary residence (defence family move every 2 yrs). Current conservative value of $350k I owe $120k, with gov paying $120 of the interest for me a…[Read more]
Further to my post above about blocks of units.Dont be put off by thinking "Thats alright for you, but i wont be able to afford to buy a whole block of units"My very first multi unit deal was a block of 4 x 2 bedroomed units in Rotorua NZ, that i purchased for $225,000 all up back in 2002. I bought them sight unseen. In fact i was living in the…[Read more]
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