I have been looking for a while for a positive cash flow property or one that is at least close in Victoria that is under 100k. Under the current conditions with house prices as high as they are i am finding it almost imposible. There is only the occasional one in the far outer reaches of victoria such as Ouyen. I have found a few that are around the Stawell area. But from one of my previouse posts these areas dont seem to be the best place to be buying.
Are there any positive cashflow properties left in Victoria or do i have to go somewhere elso to find one? can some one suggest a good area to look for one?If you cant find this answer on this web site – i doubt you will be able to find any properties for $100k giving positive cash flow.
Hi Cama
you can still find deals in NZ that are showing a 10% return, but even here (i’m currently living in NZ) the market has moved up strongly over the past 2 years and i wouldn’t want you to expect any move capital gains in the near future.
regards westan
We find cash positive deals showing 15-25% Returns in the USA email me at [email protected] to join our database
Here’s another option to consider. For that amount of money and at this stage in the property cycle, IMHO the best place to find positive cash flow from property is in an LPT (listed property trust). The underlying asset is quality property, you can get net yields of 8%, you can gear at ~70%, and whats more they have a history of strong capial growth, and the effort involved is minimal.
The risks involved in investing in small regional towns at this stage of the cycle are far greater than getting a small slice of a well managed portfolio of commercial/retail property.
s-t-d,
I agree.
Cama,
Think about your options. I’m guessing that you have very little, if anything, in the way of deposit (hence your shopping limit). Perhaps you could look for a no-money down deal? Or wait, and save – peoperty prices apper to be going sideways at the moment.
Search out properties that you could ‘reinvent’ to make them cashflow positive. Find a new use for them etc. Don’t limit your searches to the net, get out and get in the face of RE agents.
practice making offers that work for you, and get used to being knocked back.Check out the favoured attitudes of various of the more established posters here and see what they do. If you like it, approach them directly.
There are many actions you can take, but don’t just sit there and ask “Where are the properties?” They don’t just fall into your lap.
But most of all, get your brain into gear. That’s the part that you use to add value.
Thanks everyone for the replies.
I have not looked at property trust but that may be a good idea.
I have saved enough for a deposit, about 10-15k so i have got enoug to start. I think that you are right there is a huge amount of risk in reginal areas at the moment and that is why i am a bit nerves.
One option i did think about was buying a house to live in and renovate at the same time.Purchasing a PPOR is definately something you should consider, especially if you are willing to do some renovations. You will get the FHOG and CGT exemption (if you live in it for 12 months of more). Its a good way, relatively low risk way of entering the market.
Regards
AlistairAPerry
In my current situation and as long as the FHOG is still around this option is looking better and better. Have you tried anything like this before and if so in your experience are there any obviouse dangers to look out for?
Almost sounds immposible huh, although we have some refurbished one bedroom units in Cenral Coast NSW for $125k returning $130-$135 pw in rent.
That might be an option for you to coinsider.
Roy H.
L.R.E.A., Dip FS (FP)
Guardian Property Specialists (GPS)
http://www.gpsnetwork.com.auG’Day Cama,
Give Cairns a try. I bought a $83,000 1 bedder unit up there in Nov’04 and now getting $160p/w rent. Even though I bought it in November, there are still good deals to be done.
But make sure your able to gain finance for a property under 50m2.
Regards,
Mk2r [smiling]
MK2R
That sounds exactly like the sort of buy that i am looking for. I have got some familly that live near cairns that may be able to help me out with looking. Thank you.
Hi Camma_20,
You said:
One option i did think about was buying a house to live in and renovate at the same time.
Great way to start. You have say $10K, plus if you are eligible for the FHOG ($7K from Jonnie and $5K from Braxie) gives you a total of $22K.. You also need funds for Stamp Duty and conveyancing costs.You’ll need a few more $K to purchase for $100K without mortage insurance.
I note that u are 22 yo, perhaps Mum or Dad could assist by being co borrowers to see you across the line. ( I did similar for my son now 20 yo and buying his second IP at the moment)
Then when you find someting suitable u could rent out the other rooms to you mates while renovating.
I think you would learn heaps more this way that just buying and holding. Exposure to renovating, dealing with tennants, managing cash flow, etc.
Good Luck please keep us informed of your decisions and progress.
hrm
I think you are right at the moment this is the direction i am leaning towards.
What do you mean by co borrower? do you mean full guarantors for lending purposes or for them to also help fund the deposit?
Hi Cama,
Yes I own my PPOR and am currently renovating it, although I intend to stay there. My personal point of view is that there is very little downside risk to buying a PPOR, if you are happy to stay in the place. The FHOG is a definate positive, and it really only costs you the difference between what your rent would be and your intrerest payments. It will take a long time for this to reach $12K.
I’m sure there are lots of different views on this. I know that Steve stated in his first book that he put off purchasing his PPOR so that he could spend his capitl on income producing properties.
In the end it really comes down to what you are comfortable with.
Regards
Alistair
You must be logged in to reply to this topic. If you don't have an account, you can register here.
