I think the idea of positive cashflow properties is great. What I find difficult is to find such properties in my local area (Sydney). Do they exist?
I’m reluctant to purchase properties which are 200+km away which is how far I think that you need to travel away from Sydney to find these properties. I don’t have a lot of time in my life with work and family commitments so travelling this far is not what I can afford to do. Are there people that can find and manage cashflow properties?
Another question – If you had the cash for a 20% deposit would you use this or equity in your home or other investment properties?
Troy
>Do they exist?
Unless you pay close to the full purchase price with cash, well, no [^]
>I’m reluctant to purchase properties which are 200+km away which is how far I think that you need to travel away from Sydney to find these properties. I don’t have a lot of time in my life with work and family commitments so travelling this far is not what I can afford to do.
If this is the case I would suggest you dont get involved, because at the moment you dont have any choice.
>Are there people that can find and manage cashflow properties?
Yes there are but where would be the fun in that[?]
It sounds easy but, the cold hard fact is, that it isnt, thats what gives a sense of achievement.
BC
Who are these people? Where can I find them?
Troy
Troy, I believe they call them ‘buyers agents’ I have seen other people refering to them and asking about their services, do a forum search.
***This is my opinion only***, but I dont believe in the easy options, my reasoning is if something is made to easy to get into, it makes it to easy (and probably costly) to get out of as soon as something goes wrong, because I have not earned it. This then would defeat the whole purpose of the long term nature of the investments. ***This is my opinion only***
Sorry,
BC
Troy
As BC said, I think you have no choice but to look afar, or for that matter interstate as a lot of us are doing. Even overseas (NZ) for that matter. Money doesn’t come easy!!
As far as 20% deposit or using equity. Just remember that by using your equity you would then be financing more than 80% of your purchase. No problem with that because I’ve done that before. But beware that you will be paying interest on that extra borrowed money which you would not otherwise with your own cash deposit. If your return can accomodate for the extra borrowing (ie > 80%), then go for it and invest that 20% cash elsewhere.
James
Striker
Email MeHello Troy,
Cashflow +ve properties no longer exist in Sydney, the last of them went about 2 years ago..
Even 200 km away, places in Bathurst, and Goulburn are no longer +ve… but 3-6 months ago u may hav found a few…..
because of the property boom, investors are looking far and wide for places such as what u mentioned… they are out there, and the only way i found places was by driving to the locations personally… i wouldnt trust this sort of thing to another person.. and as others hav said, its heaps more fun!
i would use the equity in other investment places u hav, and and put the cash you already have into your main home loan, if u hav it under morgage, as long as the cash is from your own money, and not from another investment…
Happy hunting
Jason
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