Would anybody on this forum suggest it could be possible to get cash flow positve properties at the Gold Coast and not too far from the beach?
Thanks for your replies…
A bit of background, rough rule of thumb:
Costs to run an IP:
7% mortgage
1.5% property manager, rates, insurance, mtce
Income
0.5% depreciation write back (if newish)Rent needed to be cash flow neutral = 7 + 1.5 – 0.5 = 8%
Good luch finding a rental property not too far from the beach showing an 8% gross rental yield.The only possibilities:
1. Buy a run down shack at nearly land value, do a really cheap reno that will bring it up to the value of other properties around it.
2. Tip in a huge deposit, so you have a small mortgage
3. Buy a dual income property – a tunkey apartment (3brm that conn be closed off to create a 1brm self contained + 2brm self contained)
4. Along the same lines – a house + flat on one titleI doubt that you can BUY one.
But maybe you can MAKE one cahflow+ eg with above ideas.
Or maybe buy a block which you can subdivide, and use payment to pay down your loan.
(Check with council; don't presume this will be possible!)I'd steer away from apartments unless you count in the body corp expenses.
Maybe a small block of units which you buy in one line, not strata titled, may work.
quickchickquickchick wrote:Maybe a small block of units which you buy in one line, not strata titled, may work.These almost never show an 8% yield.
Loans are almost always commercial not residential and therefore are lower LVRs
The purchase almost always tips the purchaser into paying Land Tax
…probably won't work.Depends what you are looking for in particular and what you are willing to do to make it cash flow positive. They rarely, and even more now fall out being CF+. Think outside the box, sovle the problems of a building and you will more than likely have a CF+ property on your hands.
Thank you for your help guys!!! Great.
quickchick wrote:I'd steer away from apartments unless you count in the body corp expenses.The body corporate fees around that area can be huge! I was looking in Logan for a while, and was astonished by the body corporate fees – I guess everyone needs a pool in QLD
The rates were also quite hefty – this was Logan though, I'm not sure if the Gold Coast rates are similar.
Jamie
Jamie Moore | Pass Go Home Loans Pty Ltd
http://www.passgo.com.au
Email Me | Phone MeMortgage Broker assisting clients Australia wide Email: [email protected]
Hi,
Yes you can find positive cash-flow deals in the the Gold Coast the easiest way it to use http://www.realestateinvestar.com.au
Hope this helps…
Natss
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