I’ve been having a debate with a friend of mine about the fact that pre tax positive cash flow properties no longer exist. They are a myth and I’m yet to be convinced.
Now I know that some curve-ball type opportunities arise like boarding houses, blocks of flats and the like, but what I’m talking about is a 3 bedroom house, or town house that provides pre-tax cash flow positive returns. Oh and they need to be in towns with a population greater than 8-10,000 because I’m sure that anything smaller than that poses a big risk if the resources industry goes south.
I’m not asking where they are, I just want to know if anyone has bought one!
Please help us resolve this issue?
Lets come on discussion: http://www.ipropertyco.com/Forum/topic53-pre-tax-positive-cash-flow-property–prove-it.aspx
How about we have the discussion here instead?
Yes, I ahve cashflow positive properties that are three bedroom and in towns about 10,000 population.
cheers
Sonya
Sonya, have these been cf+ since you first bought them?
ThanksYes, they have, not by much intially as I locked myself into an interest rate over 8%, however, they are even more positive now that I have refinanced.
I know of a great deal of positive cash flow properties that are positive cash flow upon purchase and BEFORE tax!
Taking tax out of the picture entirely I know of properties that can earn 5-12% cash on cash return. So yes they do exist and in towns of over 8-10k.
PS. I am talking about houses that are 3 Bedrooms, 1 Bathroom. Not units, blocks of units or other niche properties
Ryan McLean | On Property
http://onproperty.com.au
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