I'm new to investing and would like to start with purchasing cashflow positive properties. What should I be looking for in a property and how do I work out if it will be cashflow positive? I've also started a new business and do not have good two year BAS statements (I've been told I need this) so I perhaps will have to look at creative ways of raising finance or non bank lenders. I have the deposit just need information on how and where to go to raise the rest of the purchase funds. Any help would be greatly appreciated.
I'm just looking at positively geared properties myself. Don't know much about them but check out properties for sale in Karratha and Port Hedland that are leased. Good returns of over 10%.
Positive cash flow property is basically using an on paper deduction to turn a loss into a profit. i.e. – claiming Capital Works Deductions ( cost of building the house) as well as claiming depreciation on fixures and fittings – you will need a quantity surveyor to do a depreciation schedule up for you. If you want to claim Capital Works Deductions the house must have been constructed after 1985. Be careful investing in towns solely dependant on mining in order to get positive cash flow.
Do yourself a favour grab a couple of books such as How to Create an Income For Life ( Margaret Lomas) + 0-130 Properties in 3.5 years ( Steve Mcknight) both great books about positive cash flow properties
Hi Kenten and Joann
Thanks for the tips.
WIthout 2 years Tax returns you will certainly struggle obtain finance in the current climate.
June 30 is not that far away so as soon as you have completed this years return that will certainly help but dependant on the LVR will depend on whether you need a 2nd year.
Richard Taylor | Australia's leading private lender
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Recession Buster $299+GST Fully Inspected Order Form Download – Order Form OnlineBillyboy wrote:I'm new to investing and would like to start with purchasing cashflow positive properties.
Don’t we all????
You won’t have trouble finding a lender if you go straight to a recommended broker…
Billyboy
2 year tax returns is usually the norm for people in business.
Even if you go on a lo doc loan, you will need to have a 40% deposit, though they are tightening and changing lo doc loans by the minute.
If you have a good deposit and the current time you have been in business shows positive returns there still may be a lender willing to give you a go.
The banks only what to really know 3 things;
If you can afford to pay the loan
How you are going to pay the loan and
What happens if you don't pay the loan.Regards
Rob Bologna
Dollar Wise Financial Services
[email protected]
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