Just posted a question and should have read this thread first!
Have been poking around this forum for a few weeks and this is a great thread (although it took me a while to figure out what CF+ was …lol)
Thanks for the thoughts on stragegies DAZZLING as now I have to talk with husband to figure out what we want .
aussiecam wrote:As soon as I saw the page in Steve's book that said effectively the way to CF+ve earnings is to find properties yielding in excess of 10%, I thought, "OHHHHHH OK, that's what I have been missing, the key to wealth generation is spotting non-existent undervalued asset opportunities". I am a believer in efficient markets. Rental yields are at historical lows (hello, anyone hear of the property boom???), because interest rates are low and capital gains are taxed concessionally. Having done a quick scoot around the market even country properties sub $150k are yielding 6% max. So in answer to the question "where do you find such properties" I would answer – "you don't – the yields have been traded down." Steve's book may have been relevant when he started writing it, but I doubt it's relevance now. I wonder how many 10% yielding properties has HE bought in the last 12 months? Sorry to sound like a cynic, but I am happy to be proven wrong. Anyone???Unfortunately I missed out on this one http://philspropertydeals.com/cashflow-property-10-roi-forbes-nsw. It had a 10% ROI. I am waiting for the next one! 10% ROI is rare and 6% is more common but you just need to know how to find them. If you find out just let me know
!
Just a word to all the cynics out there…
I spent 3 months searching when I started looking, for CF+ properties.
Quite frustrated at times.
Decided I was looking for the wrong thing…. "a solution" and started changing my criteria.The question is, what could make a property CF+? Or, what could I do to make a property CF+?
If you are looking for CF+ in the middle suburbs of Melbourne or Sydney, you are quite right, you'd have to be kidding yourself.
So what to do you need to do differently, to get a different result?
These investments are NOT easy to find. But they can be found. Today."Seek and you will find".
We did, and it has worked for us.
quickchick wrote:Just a word to all the cynics out there…
So what to do you need to do differently, to get a different result?
These investments are NOT easy to find. But they can be found. Today."Seek and you will find".
Can you share some tips? Thanks!
Hi peoples
Am not in the market to buy myself, but always looking out of habit.
Saw this one the other day, so just thought I’d post it.They say you can’t find POSITIVE GEARED investment properties, here is one I found returning over 8% on Realestate.com.au
Property No. 106818309$220 week rent, 139k asking price, CRAZY!!!. Try doing that here in Sydney.
Agree deals like this are getting harder to come across, but iIt can be done!!
Hi all!
I would be very interested in reading the post that Jarrah has a link to on his post, but seem to be unable to view.
Would love is someone can email to me as for some reason i cannot access, it just takes me to the main page everytime that i click on it.
My email is [email protected]Thanks
JohnI totally agree that finding positively geared (or at least positive cash-flow) properties can be done.
My concern with the property Johnny1974 mentions is that it’s clearly not new and that it might pose some problems. You’d definitely want to get it checked out by an architect and be prepared to let go of the thought of buying this one if the report wasn’t great. There’s no point buying a property that’s positively geared if you have to spend a considerable amount of money on maintenance or repairs soon after you buy it – you’d at least need to factor that in.
Location-wise, it’s not far from Hobart and the numbers certainly look good.
Nevertheless, even if you miss out on this one, there are more to find – possibly some decent newish apartments in the Blacktown area (Sydney’s west) or some properties between Brisbane and the Gold Coast (Beenleigh, Eagleby). It all depends on your budget.
Good luck hunting!
hotspotting.com.au has good info on rent return properties
Is it just me or do most (yes I'm sure not all) people think that CF+ properties just happen with no work involved. I have been doing my research into Share houses and Rooming houses, yes I know they have a bit of a bad name but I reakon if they are well managed…like hands on….they could be good money and very rewarding at the same time. I have been looking at 3 that are for sale in Frankston VIC, they appear to be very well managed, one is all female with average age of tenants in their 50's. These properties are bringing in $40K+/year. But yes they need to be hands on managed I think. My thoughts are that this is a very socially acceptable way of making money thru real estate as well as helping the community….I think I might be talking my self into making an offer
Good luck fella!
Sounds great, just make sure you do your research. I'd love to hear how you go!<br /:)” title=”>:)” class=”bbcode_smiley” />
Dencashflow positive properties are done daily with vendor financing every single property bought in sydney can be turned into a cashflow positive property if managed correctly, thats the beauty of having knowledge wich is usually got 3 ways thru mentors if your lucky
through trial & error or through paying for it or a combo of these 3cameron scott
[email protected]
positively geared property partnerships`wow, I love you for that post!
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.
morrissue70 wrote: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.Hi Sue,
Welcome to the forum.
Good to see another CF+ investor posting here. I too have built a CF+ portfolio, and have always invested by locking in a capital gain from day 1 by buying below market value, any further gain in value from that point on i have treated as a bonus. Rather than relying on getting capital gain to make the whole investment work like some others do.
My investing is all about long term sustainability of ownership. Build capital with the purchase of each deal, and growth of rent role over time.
As you well know, cash flow should always be #1, and capital growth #2, as if you dont have the cashflow, you wont be able to own the properties long enough to realise the growth in value.
Very simple really, but a principle that so many seem to struggle to grasp.
I look forward to seeing more posts from you.
Hi Clint wow that was quick, this thread is so inspiring.
Yes I agree also with buying well and you can. A reno is also worthwhile and I have also set up a share house situation on 2 properties successfully where theres people renting the rooms. I have made the best rent return on these i.e. one of them returns $250 a week cash pos – my Byron Bay property. I have also recently investigated NRAS with some good results. NRAS has come along way since its inception and banks lending policies have changed somewhat. Theres some interesting options out there in this arena at the moment.
This may sound stupid but what does CF stand for?
Packer wrote: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 payments. Even when 100% of the purchase price is funding via a mortgage.The amount of rental income that is surplus after paying all the ownerships costs, is the amount of positive cashflow the property generates. We normally are focussed on pre-tax cash-flow, ie. Not factoring in tax credits, as you generally dont get those until the end of the tax year.
Hope that helps.
I know of some places in Queensland that are reported to be looking good for positive cash flow in the near future. <moderator: delete advertising>
proptymanproptyman wrote:I know of some places in Queensland that are reported to be looking good for positive cash flow in the near future. <moderator: delete advertising>proptyman
C'mon proptyman…. Share with us all.
well one of the areas is related to mining and the other is taking advantage of building a place that has a separate section to it that can be rented out separately. This second approach means you can charge rent for the home as well as the separate granny flat type arrangement!
what do you think?
proptyman!
:)” title=”>:)” class=”bbcode_smiley” />
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 payments. Even when 100% of the purchase price is funding via a mortgage.
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