All Topics / Help Needed! / Positive Cashflow – Where to Start??

Viewing 19 posts - 1 through 19 (of 19 total)
  • Profile photo of Hifo01Hifo01
    Member
    @hifo01
    Join Date: 2014
    Post Count: 1

    My wife and I have been conducting due diligence on a variety of areas seeking to purchase a solid cashflow positive property to begin – Being in Qld wwe have given due consideration to the Surat Basin and also looked at Adelaide, Melbourne and Perth – we feel as though as head is spinning right now.

    How do we settle the approach to ensure we end up with the correct purchase in the right area?

    We have plenty of funding to ensure a good deposit and good equity in in our PPOR but wish for this place to be kept entirely separate from all our investing.

    Many thanks for your help   

    Profile photo of Jamie MooreJamie Moore
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    @jamie-m
    Join Date: 2010
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    Hi Hifo

    Welcome aboard.

    First thing you need to do is commit to an area – it's too hard staying on top of every capital city market and it will drive you crazy.

    Once you've decided on an area – work out whether you're going to source the property or use a BA.

    With your PPOR it's important that you don't tie it up with your IP – lots of bankers (and brokers for that matter) will incorrectly structure your loans and tie up the two properties.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
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    Profile photo of Jamie MooreJamie Moore
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    Join Date: 2010
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    By the way – is that your dog in the pic? I'm a sucker for brachy breeds – I have two spoilt pugs.

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
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    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
    Join Date: 2003
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    Hi Hifo

    Firstly welcome to the forum and i hope you enjoy your time with us.

    Be surprised how many investors we talk to say the same thing.

    Certainly i advocate to all of my clients that the IP and PPOR are kept separate and not crossed collateralised but unless you are providing some cash input (which is not recommended whilst you still have a non deductible PPOR loan) you are going to have to raise some funds against your PPOR. It is how this is done that is important.

    In regards to choosing an area to dip your toe in the water you have to ask yourself what are your objectives for investing.

    Are you looking for cash flow, capital growth over time or a combination of both.

    Looking thru the list of towns / cities i have to say i would not be putting any of our clients into such areas as i personally think you maybe seeing a market top in a few of these areas. Plenty of other areas that have plenty of life left in them.

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
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    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of Little_StoneLittle_Stone
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    @little_stone
    Join Date: 2014
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    Are you looking for cash flow, capital growth over time or a combination of both.  

    Hi Hifo,

    The quote from QLDS007 is really sound advice. A Financial Planner is a good way to see with what type of investment suits your “PURPOSE” for investing your money.

    I also agree with QLDS007 with the areas chosen I wouldnt be recommending those either. I’d be thinking closer to your home, Brisbane CBD is really hot right now and surrounding suburbs.

    Hope you have found the forum useful.

    L_S

    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
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    Not convinced i would be rushing in to Brisbane either.

    Whilst 99% of my properties are in Brisbane we are certainly not putting our clients into the City at the moment.

    There are better low risk areas for both growth and cash flow.

    Cheers

     

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
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    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of worldinvestorworldinvestor
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    @worldinvestor
    Join Date: 2011
    Post Count: 297

    Hi hifo

    Just keep researching and I would also look at the somersoft forum and where people are investing. In this part of the cycle I would be staying away from any mining towns regardless of the cash flow.

    Sydney and Perth market started rising 2 years ago so I would probably be looking at markets which are started to rise, many are finding good yields and growth in the SE corridor of QLD.

    As far as buyers agents are concerned I would be very wary on who you use, make sure you do homework and in a hot market they have many clients and you will just be another chasing the same product. If you have the skills to research and the option to fly over it will be cheaper and perhaps a better result. I invest around Australia and used BA but I no longer do this as I have found most are average and the fees are costly.

    All the best

    WI:)

     

    Profile photo of Little_StoneLittle_Stone
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    @little_stone
    Join Date: 2014
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    Not convinced i would be rushing in to Brisbane either. Whilst 99% of my properties are in Brisbane we are certainly not putting our clients into the City at the moment. There are better low risk areas for both growth and cash flow. Cheers Yours in Finance

    Hi Richard, do you consider the yields too low for CBD purchases..? Being that you have 99% of your properties there. Where do you consider the safer suburbs to enter into..?

    L_S

    Profile photo of Nigel KibelNigel Kibel
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    In my view if you are after cash flow you can not go past the United States especially as you can borrow around 60% as a non-recourse loan

    Nigel Kibel | Property Know How
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    Profile photo of Richard TaylorRichard Taylor
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    @qlds007
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    Little Stone i don’t own any properties in Brisbane CBD.

    All of mine are in the Inner West suburbs (Toowong, Taringa) as well as Inner North in Clayfield, Nundah etc

    I don’t feel getting 5.5% Gross return and then paying Body Corporate fees to be a good investment.

    We are not putting any of our clients into Brisbane at the moment.

    Cheers

     

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
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    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of Little_StoneLittle_Stone
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    @little_stone
    Join Date: 2014
    Post Count: 17

    Interesting.

    I understand the rental yields to be 2-3% but the growth potential being talked about is between 6-8% as a minimum.

    You prefer 5-8% yields over 6-8% capital growth..?

    L_S

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
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    No i prefer 5-6% rental yield and 5-8% capital growth with low price risk.

    That is why we are not putting clients into Brisbane

    Cheers

    Yours in Finance

    Richard Taylor | Mortgage Broker helping investors build their wealth thru property
    http://www.mortgagecapitalaustralia.com.au
    Email Me | Phone Me

    0-40 Properties in a decade with a unencumbered portfolio value in excess of $40M. Ask me for a copy of my API Interview.

    Profile photo of EngeloRumoraEngeloRumora
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    @engelorumora
    Join Date: 2010
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    Hey guys,

    This is my first post in a long time that isn’t in the “overseas” section of the forum lollol

    Where would one invest right now in Australia to get the best BANG for the BUCK?

    I remember a couple of years ago when I was still in Australia we were sourcing some great deals in regional NSW, flood affected areas of Queensland and finding some crackers on the Central Coast and Newcastle.

    Thanks for reading and have a great day.

    • This reply was modified 5 years, 11 months ago by Profile photo of EngeloRumora EngeloRumora.

    EngeloRumora | Ohio Cashflow
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    Profile photo of Steve McKnightSteve McKnight
    Keymaster
    @stevemcknight
    Join Date: 2001
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    Where would one invest right now in Australia to get the best BANG for the BUCK?

    Depends what you’re looking for. If it was generic growth I think Sydney or Brisbane is better value than Melbourne, Perth or Adelaide right now. Of course, things will change over time.

    – Steve

    Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
    https://www.propertyinvesting.com

    Success comes from doing things differently

    Profile photo of BennyBenny
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    @benny
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    Hi Steve,

    Of course, things will change over time.

    Aha, I see you have added a quote – these seemed to disappear during the forum changeover. Let’s see if my quote works too…

    Woohoo – it did !!

    Benny

    • This reply was modified 5 years, 11 months ago by Profile photo of Benny Benny.
    Profile photo of Jacqui MiddletonJacqui Middleton
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    @jacm
    Join Date: 2009
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    It’s not the case that all the “cashflow positive properties” are clustered in one state.

    Cashflow Positive properties, or those that cost so little to hold it almost doesn’t matter…. they are out there in particular pockets all over the country.  The pocket locations and dwelling types are constantly changing.  One month suburb X is dishing up the goods, and a few weeks later it might not be, but has been replaced by suburb Y.  One month, 3 bedders in suburb X are dishing up the goods, and a few weeks later 3 bedders are no good, but 4 bedders are.  It’s a moving target.  It keeps numbers-obsessed-me busy… tracking suburbs to notice as they are falling out of favour with me and noticing the areas that are coming into favour with me.

     

    Jacqui Middleton | Middleton Buyers Advocates
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    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of EngeloRumoraEngeloRumora
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    @engelorumora
    Join Date: 2010
    Post Count: 618

    Thanks for your post Steve.

    Well done on your Florida portfolio. Florida has been the hottest market in the US for a while now.

    There are some amazing opportunities in Ohio at present also even tho it still has a stigma about it.

    Thanks and have a great day.

    EngeloRumora | Ohio Cashflow
    http://ohiocashflow.com/
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    "Make a PASSION an OBSESSION and you'll never work a day in your life"

    Profile photo of alatusalatus
    Participant
    @alatus
    Join Date: 2010
    Post Count: 9

    Hi Hifo,

    Sydney metro is booming, prices have gone through the roof,so very hard to find PCF over there now. However, Central Coast is still reasonably affordable, but the tidal wave is quickly approaching.

    I live on Central Coast and I happen to know this market very well. My recent find is a 2b house+1b granny on one title,metal cladding/cement tile roof,fair condition,on 750m block! Comes with 1b Granny COUNCIL APPROVED! Asking 370k,will sell 350k. Current rent 465pw(6.2%),increase potential to 570pw(7.6%) after 20k reno.

    Due to my current personal circumstances, I’m not able to seize this opportunity, but I can let you to have it for a $1000 finders fee. As I said, I live nearby, so I can also manage the whole purchasing process + supervise reno, if required.

    Pls call back if you’re interested.
    Anthony 0400 782 700

    • This reply was modified 5 years, 11 months ago by Profile photo of alatus alatus.
    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    Well you don’t see that every day. :P

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
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    Investment Focused Finance Strategist - servicing Australia-wide

Viewing 19 posts - 1 through 19 (of 19 total)

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