Looking for Positive Cashflow Areas with Growth Potential

Maybe Canungra? I’ve posted about it a few times in a different thread; check out my posts from July 2016 onwards https://www.propertyinvesting.com/topic/4384472-answers-to-where-to-find-cf-deals/page/26/. Seems to be doing well there at the moment, and usually about 45-50 minutes to Surfers Paradise!

Look, that’s just what I think, and that’s to be taken as a layman’s opinion; obviously you should do your own analysis. I do think the area is worth checking out though. Check out the amount of infrastructure, government spending, and new developments planned for the Coast, and then tell me Canungra won’t benefit.

Good luck man!

PS: Beenleigh has been going up at roughly 5%/year since we last spoke. Told you that area wasn’t a bad spot! :)

ajayayyar wrote:

Hi all,

I am looking for positive cashflow areas with capital growth potential – I’ve traditionally invested in properties in NSW (where I live), however I am open to looking in other areas. I’d be most comfortable with East Coast states – i.e. Qld, Vic, but open to other areas if the numbers stack up.

Assume 5% bank interest rate for the figures.. I just need to know which areas you all think would be worth exploring. I did look at Logan in Qld a few years ago and was close to buying a townhouse but the building inspection didn’t check out.

I’m also OK if the property breaks even, and if it has excellent growth prospects I’m happy to consider something that makes a very minor loss each year.

Look forward to your thoughts. Thanks all.

Best regards,
Ajay

Hi Ajay,

There are a few properties fitting this description down south and up the coast too – its more about finding the right property so sometimes when a client of mine has a positive cash flow brief we will highlight 2 or 3 areas with some growth potential and then hunt for the right deal. Do you just want to cover your mortgage or do you want genuine positive cash flow assuming the deal is fully funded with debt? The second is much harder than the first.

Ok so I will keep you posted if you like on this

Cohuna, Vic

42 william street

Purchase price; $121,000 3b1b (house on 700m2 block)

tenant on 2 year lease at; $230 a week

going through settlement at the moment,

Looking at $45-105 dollars aftere expenses based on a few things.

Should be able to put 15-30 grand into it and have it reappraised closer to 200k.

Any ideas on a general tactic for highlighting positive cashflow areas. whilst I appreciate all the tips in this forum, I am looking to do the researching graft myself so I can fully commit to the investment rather then looking for a list someone else has put together. So starting from scratch with a map of QLD is there any basic tactic you guys use to direct your research, i.e 25km radius from brisbane >planned infrastructure work>recent growth and neighboring suburb growth>average house price/rent price average demand.

Looking for some kind of framework to direct my initial research for cashflow property, any help is much appreciated.

Hi Jcam,

I was pretty impressed with Dave Ward’s answer to someone else on that very subject. Go here to find the link:-
https://www.propertyinvesting.com/topic/4410491-the-big-picture-for-new-readers-especially/#post-4697972

….then, once in that thread, do also read the earlier question and all of the other answers. But it was Dave’s response that impressed me, hence my pointing you straight to it.

Hope it helps somewhat,

Benny

but are they easy statistics to source yourself or can that level of research only be done using things like DSR and RP data.

Sorry Jcam, but I can’t answer that. Maybe others can though – let’s see eh?

Also, now and then I read of some offering to “share” a subscription with others – cuts the cost to all, and is probably more economically sensible if you are not using such data in your day-to-day business. Keep an eye out for those offering a share….

Benny

So, Ajay, what did you end up doing?

Logan has had some steal prices go through

and albury has as well, both positive cash and very likely growth over the next 5 years.

Logan is OK – net yields aren’t amazing (if existent at all!)

My concern with the council area in general is the council has actively noted that their development plan is to keep increasing land release from their extensive undeveloped areas to try stifle property value growth over the longer term – to try to keep the council region as affordable to low-middle incomes.

I reckon Canungra might do ok out of the Commonwealth Games.