What is the best way to go about looking for properties that will be cashflow +. They seem to be very rare. Can anyone give me any tips on strategies and also some areas in Melbourne and Victoria that are worth investigating.
Thanks
Mike
Mike_Melb
This post is discussed by Steve McKnight in his latest newsletter (30 Jan 2004). Its a great reply and I feel that all newbies should read it before they do another thing. Its advice I totally agree with.
what yack said
Does anyone have a link to the newsletter archives,
I don’t seem to be receiving the newsletter anymore
and I can’t find the archives on the pi.com www
site.andy
Originally posted by yack:This post is discussed by Steve McKnight in his latest newsletter (30 Jan 2004). Its a great reply and I feel that all newbies should read it before they do another thing. Its advice I totally agree with.
The benefit of hindsight would be a truly wonderful thing to have.
[
]Monica Martens
Hi readers,
My name is Warren and I have been buying positive and negative geared properties since I was 19 (I am now 35). Since reading Steve’s book I have hardened my focus on positive geared properties. There is no doubt that this is a challenge! I can not speak for the Victorian market as I am in NSW but you have to be diligent to be sure. My wife and I have created search zones that eveolve with the changing market. These zones are qualified initially by factoring in different items that we consider are important (a bit like what Steve would call a filter or template). Our search zone appears to get further away from Sydney each time and I would be lucky if I am able to pick up more than one or two proerties before we have to move on. We have missed many opportunities due to being too busy with my own day to day work but we continue to scrape in now and again.
So far it appears that the internet is only good for research as opposed to buying off because by the time it has been displaye d it is often too late. Plus the lazier investors will try this method to avoid having to commit to a whole weekend of driving around. Where the diligence comes in is in staying in contact with the agents that you found on the original trip around to a point where you will be advised of something to suit before it has a chance to go on the open market. Since the Australian system of selling real estate essentially has the agent working for the vendor and not you, it is a hit and miss process until you get an agent that values both parties equally.On another topic, my questions to put out there are as follows: I do not hear a lot discussed regarding land tax. As most will be aware, eventually the unimproved value of the land in your portfolio will be subject to land tax. I am only approaching this area now and would welcome advise regarding other peoples experiences at this juntion.
The other area of difficulty I still encounter is that despite acquiring properties that make money, the lenders still want to know how you will service a percentage of the debt that they will not except rent for. In othe r words I still seem to need my own business financials to demonstarte debt servicibiltiy. I have found that some flexibility exists with non-bank lenders (especially if you are willing to pay over the odds interest). Any thoughts?Warren
Hi Mike,
Although I reside & invest in Queensland, the Victorian Market is no different to anywhere else. I always look for a solid property that I can add value to (eg. paint, landscaping, reroof, etc.) that will allow capital growth in the near future. The rental is important, but sometimes a little pain on the income front will be compensated for by the asset growth. Remember, the most CGT that you pay after 12 months ownership on selling an investment property is approximately 25%.
My last three purchases have been in a small country town on the main highway, where there are a limited number of available houses, a demand for accommodation (lifestyle moves), it is expensive to build new houses, & there is a willing agent with a good property manager. Believe me, buy right & the rents will increase as your assets grow in value. Hope this helps. Kind regards, Bob.Hi Andy,
Back issues of the Insider can be found on the following page:
https://www.propertyinvesting.com/newsletter/backissues.htmlYou might want to check your profile and/or contact tech support [email protected] with regard to not receiving the newsletter.
Hope this helps.
Bizzi
>>The benefit of hindsight would be a truly wonderful thing to have.<<
What kind of remark is this Monica ?
If it was meant as a comical general remark fine but if was meant as a comment on Steve’s suggestion then I would suggest that it sounds as if you spoke before you actually had read the newsletter.
The advice of trying to ‘find a solution’ is excellent. Thinking outside the square is what makes one a magnificent winner.
And, the most wonderful part of thinking outside the square is that it works and produces results in all kind of economic climates.
I am however still waiting for someone to share some examples with us.
Pisces
Hi all
yes a great response from steve.
welcome to warren, Bob, monica and Bizzi
great to have you here.
westan
I find +ve cashflow deals in New Zealand which I sell to other investors. To be on my database send an e-mail to [email protected]
Having spent many hours hunting positive cashflows in Australia I am on the brink of exhaustion!
With median houseprices being 200k+ 1-2 hrs out of Brisbane CBD I feel the 11sec rule is not possible to find.
I have looked across the Tasman and see plenty of long term rented properties in the 50-75k range with retuns of $120-$175 per week. This seems more like positive cashflow to me!Thanks westan.
I have been watching the forum from the distance for a while – what a great community! Possibly tough times for a new starter like myself but you have got to start somewhere [
].Can you find some +ve properties in SA perhaps[
] – wouldn’t have the guts to invest in NZ as yet.Bizzi
[]Hi,
I’m also a newbie and have been searching the internet for positive cashflow properties in regional Victoria.
I understand that the Internet is probably not the best approach, but at this stage i have not found an area that seems to produce positive results, which i can then narrow my search. Been at it for 4 weeks now.[xx(]I must admit, i didn’t realise that property prices have risen so much in these regions. I guess i’m probably a couple of years behind the pack! [:0]
Cheers.
Hi dsisman,
you are probably ahead of 98% of the population instead, the best way is to use your feet and ears – walk and listen – no area explored is wasted – staying at home is the way this does not grow
cheers,
bluecatDo today what you want to do tomorrow
Hi Everyone,
Regarding cashflow properties, I live in Brisbane, and continually search the net.I found a 2br unit in Cairns that I bought for $54,000, and it returns $110 per week. I figured this pays for itself. I bought this 18 moths ago, the unit next door to this recently sold for $97,000!, I have since refinaced and bought another unit in Cairns, and I have bought a house in Brisbane (paid $134,000), now worth $210,000, which I initially got $165 pw for now returns $210 per week!. All these properties have gone up in value and I have equity to buy more with bigger deposits. The point I am making, is to make a start, even if they just pay for themselves, eventually you will have equity to move on to another investment.Hi Mattroe7093,
I like your approach and intend to tackle it in a similar way – it’s just a matter of finding a property that will meet this criteria. I figure as long as you don’t have to add money to it you should be right in the current climate, as a new starter I mean.
Bizzi
[]Hi all
Steve’s newsletter reply on this topic was most informative.
I think this sums it up – you cant just focus on the 11 Rule.
“By all means buy regional property, but first identify the risks and understand the market. Johnny Come Latelys of the investing world are in danger of being sold sub-standard property (and shares) at inflated prices by the crafty investors who know the boom market doesn’t last forever. “
I think my signature quote below is pretty good advice as well – be creative!![
]Regards
Jan
Regards
“Do not follow where the path may lead. Go instead where there is no path and leave a trail” Ralph Waldo Emerson
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