I am new to the game and have been conducting some market research in the Adelaide market and the South Australian rural areas.
I am trying to find potential 'Positively Geared' investment properties in SA.
Any advice on prime areas I should be looking into?
Thanks guys,
Try reading through the archives of the forums, you'll see this question is getting very very old.
What are the results of the market research you have found in these areas? Surely this should tell you what is out there or what not? People make opportunities through good investing and massive amounts of reasearch, those that they do find are rare, and besides, after all that hard work no one is going to share them on silver platters for people. In todays markets there are no high yielding investments just sitting there, those that are reside in 'risky' mining towns. It is imperative that you do your due dilegence wich such investments, and is vital that you command a good understanding for how they work. To do so you must continue your research, including sourcing which companies have contracts in these towns, what the expected mining life is, and what the rental cycles are like; alot of the times you might have periods of 10%yield but on the other hand have month long vacancy rates. Just keep looking and looking and you will develop an understanding for these areas, but don't think people are just going to tell you without the hard work.
Dear Stumunro and Bjozef,
I agree with everything you have said Stumunro, expect the statement that postive cash flow can only be found in mining towns.
Our company sucessfully secure positve cash flow properties on a regular basis for our clients.
Whilst Positive Cash Flow are rare, every Property Advocate at our company spends 60 hours a week in the process of sourcing such investments, with great sucess in a variety of towns with multiple industries (not just mining).
To learn more, please make an enquiry at the following address: http://www.buyersagent.com.au
Kind Regards,
Mark Leith
Property Advocate
Global Buyers Agent
http://www.buyersagent.com.auMark,
Cash flow positive investments are all relative to your income.
What sort of income do you need to earn to make these properties that your company sources cash flow positive? It's not that difficult to source cash flow positive properties if you're in the highest tax bracket.
t803815 wrote:Mark,Cash flow positive investments are all relative to your income.
What sort of income do you need to earn to make these properties that your company sources cash flow positive? It's not that difficult to source cash flow positive properties if you're in the highest tax bracket.
In regards to the above statement, could you please elaborate on what you mean by 'its not that difficult to source cash flow positive properties if you are in the highest tax bracket.
Thanks
Hi Mark,
Could you please tell me more about the company you refer to in your comment. I have taken a look and submitted a request but it would be great to learn more about what you do and how you can help people like myself.
Thanks mate,
Ben
Thanks to everyone who has the taken the time to reply to my request for advice.
I am greatful and find all your comments extremely useful, keep them coming!
Thanks again
!
Ben
Actually I didn't say the ONLY positive geared properties are in mining towns, i said that the only ones that are easy to find, i.e advertised as 10% yield on realestate.com.au are ones in risky mining towns. Yes there are good deals out there, but you have to work hard for them, including canvassing specific areas you have researched, speaking to an agents and really getting into the active role of finding properties, not passively on the internet.
P.s YES a buyers agent can find you a positive cashflow property! BUT don't forget to factor in the few thousand you will have to pay for the finders fee. If you are after +ve cashflow properties, look real hard at the growth you will get. Rural towns will provide sufficient yields to find +ve cashflow, but these old fibro houses in many cases will cripple your clashflow with maintenance costs.
P.P.S dont be disrgruntled as there are still oppurtunities out there to get good yields you just have to be a bit more creative in your approach to investing.
Hi bjozef,
Cash flow positive, as opposed to positively geared, means you are making a negatively geared property cash flow positive through depreciation.
As the value of your property is depreciating over time on paper, this can be used to reduce your taxable income and allow you to claw back the difference between the tax you paid on your income, and your income minus the depreciation. For example:
If your annual income was $50k and the depreciation on your investment property was $5k, then you would be entitled to claim back $0.30 for every dollar you paid in tax above $45k, so in this case it would be $1500.
The higher the tax bracket, the more you are able to claim back. For example:
If your annual income was $200k and the depreciation on your investment property was $5k, then you would be entitled to claim back $0.45 for every dollar you paid in tax above $195k, so in this case it would be $2250.
Therefore the higher your tax bracket the higher your chances are to source cash flow positive properties.
t803815 wrote:Hi bjozef,Cash flow positive, as opposed to positively geared, means you are making a negatively geared property cash flow positive through depreciation.
As the value of your property is depreciating over time on paper, this can be used to reduce your taxable income and allow you to claw back the difference between the tax you paid on your income, and your income minus the depreciation. For example:
If your annual income was $50k and the depreciation on your investment property was $5k, then you would be entitled to claim back $0.30 for every dollar you paid in tax above $45k, so in this case it would be $1500.
The higher the tax bracket, the more you are able to claim back. For example:
If your annual income was $200k and the depreciation on your investment property was $5k, then you would be entitled to claim back $0.45 for every dollar you paid in tax above $195k, so in this case it would be $2250.
Therefore the higher your tax bracket the higher your chances are to source cash flow positive properties.
Thanks for your reply to my request. I now understand you.
Dear Ben,
I have sent an info pack through to your email address. If you have any further questions please reply to that email.
We specialise in Postive Cash Flow properties with returns of up to 15% Return on Investment.
However, up to 10% return is far more common.
Kind Regards,
Mark Leith
Property Advocate
Global Buyers Agent
http://www.buyersagent.com.aut803815 wrote:Mark,Cash flow positive investments are all relative to your income.
What sort of income do you need to earn to make these properties that your company sources cash flow positive? It's not that difficult to source cash flow positive properties if you're in the highest tax bracket.
Hello,
Thanks for your question. A true positive cash flow property does not require your financial input and in some cases it generates a small income. In this way it is not dependant on how much money you earn or the tax depreciation schedule that is applicable. In this situation you can consider any tax back from the government as a bonus.
Furthermore, as rents continue to rise and the purhcase price remains the same your return on investment increases every year. One of my investments now returns 27% because of this process.
Kind Regards,
Mark Leith
Property Advocate
Global Buyers Agent
http://www.buyersagent.com.auAlso it is important to note that the term positive geared is different to positive cashflow. Generally speaking positive geared means the rent will cover the mortgage costs. These days it is common that people talk about positive cashflow which isn't necessarily a positive geared property, but through depreciation and tax breaks it becomes + cashflow.
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