Forums / Property Investing / General Property / Looking for Positive Cashflow Areas with Growth Potential

Viewing 20 posts - 1 through 20 (of 21 total)
  • Profile photo of ajayayyarajayayyar
    Participant
    @ajayayyar
    Join Date: 2005
    Post Count: 175

    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

    Profile photo of OriginalsinnerOriginalsinner
    Participant
    @originalsinner
    Join Date: 2005
    Post Count: 79

    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! :)

    Profile photo of JaxonJaxon
    Participant
    @jaxona
    Join Date: 2014
    Post Count: 282

    Hey Ajay,

    Depending on what your looking to aquire and LVR etc, There are lots of options up north that from as far as I can tell, far outshine Sydney and many surrounding suburbs.

    If you would like to have a chat and ask as many questions as you like

    feel free to email me.

    Thank you

    Kind regards

    Jaxon Avery

    Profile photo of BuyersAgentBuyersAgent
    Participant
    @knightm
    Join Date: 2005
    Post Count: 317

    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.

    BuyersAgent | Precium
    http://www.precium.com.au
    Email Me | Phone Me

    South Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW

    Profile photo of Tony FlemingTony Fleming
    Participant
    @the-dark-knight
    Join Date: 2008
    Post Count: 396

    Hey Ajay,
    If you are looking for strong cash flow. I would recommend Albury/Orange/Wagga Wagga. I invest heavily in Albury. Steady growth, strong yields, good tenant demographic etc. Like any investment make sure you do your homework. I’d try and buy with a tenant in place if possible as most regionals have a higher vacancy rate.

    Tony Fleming | Triumphant Property Group
    http://www.triumphantpropertygroup.com.au
    Email Me | Phone Me

    NSW Buyer's Agent specialising in Western Sydney-Blue Mountains-Orange-Albury

    Profile photo of JaxonJaxon
    Participant
    @jaxona
    Join Date: 2014
    Post Count: 282

    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.

    Profile photo of BennyBenny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,366

    Hi Jaxon,
    Nice numbers there mate !!

    Benny

    Profile photo of Jcam92Jcam92
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    @jack-shepp
    Join Date: 2017
    Post Count: 17

    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.

    Profile photo of Jcam92Jcam92
    Participant
    @jack-shepp
    Join Date: 2017
    Post Count: 17

    and also what is the general opinion is on using DSR data to identify potential suburbs, from what i have experimented with it so far it seems useful

    Profile photo of BennyBenny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,366

    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

    Profile photo of Jcam92Jcam92
    Participant
    @jack-shepp
    Join Date: 2017
    Post Count: 17

    Thanks benny, appreciate that link, I had a look through and that is a very comprehensive answer. the initial statistical research seems lengthy which I like but are they easy statistics to source yourself or can that level of research only be done using things like DSR and RP data. If so, is there a particular platform anyone recommends, as from breifly looking to access the full features membership is quite pricey at $135/month

    Profile photo of BennyBenny
    Moderator
    @benny
    Join Date: 2002
    Post Count: 1,366

    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

    Profile photo of JaxonJaxon
    Participant
    @jaxona
    Join Date: 2014
    Post Count: 282

    Simple thing I do,

    Ok firstly I only want positive cash flow IPs

    So I work out the Rental return vs the expenses (loan, bc, rates, etc)

    also your going to have to really study what your looking for, also finding things on alternative listing sites such as gumtree, cold calling real estate firms, other sites, cold calling etc.

    then hustle, put multiple offers than if the numbers add up and the suburb is not based on one large aspect (farming/Mining)

    Profile photo of OriginalsinnerOriginalsinner
    Participant
    @originalsinner
    Join Date: 2005
    Post Count: 79

    So, Ajay, what did you end up doing?

    Profile photo of ajayayyarajayayyar
    Participant
    @ajayayyar
    Join Date: 2005
    Post Count: 175

    Hi originalsinner,

    I’m starting to look at some areas now – areas I am considering are Central Coast (NSW), Leppington (NSW), Logan (Qld), and Albury (NSW/VIC).

    Aiming to secure something by end of the year.

    Cheers,
    Ajay

    Profile photo of JaxonJaxon
    Participant
    @jaxona
    Join Date: 2014
    Post Count: 282

    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.

    Profile photo of Tony FlemingTony Fleming
    Participant
    @the-dark-knight
    Join Date: 2008
    Post Count: 396

    Logan and Albury are solid choices in my opinion.

    With Albury focus very strongly on location to shops, schools and transport. As the tenant demographic is usually elderly or single parents especially around the older suburbs. They rent much quicker and you minimise the risk of vacancy.

    Tony Fleming | Triumphant Property Group
    http://www.triumphantpropertygroup.com.au
    Email Me | Phone Me

    NSW Buyer's Agent specialising in Western Sydney-Blue Mountains-Orange-Albury

    Profile photo of Corey BattCorey Batt
    Participant
    @cjaysa
    Join Date: 2012
    Post Count: 1,010

    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.

    Corey Batt | Precision Funding
    http://www.precisionfunding.com.au
    Email Me | Phone Me

    Investment Focused Finance Strategist - servicing Australia-wide

    Profile photo of JaxonJaxon
    Participant
    @jaxona
    Join Date: 2014
    Post Count: 282

    Well I found a few deals west brisbane (logan includ) that are all 8.5% ROI or higher, plus a few deals that had great options for sub or add/ons or rebuild that likely would be far more lucrative.

    Profile photo of OriginalsinnerOriginalsinner
    Participant
    @originalsinner
    Join Date: 2005
    Post Count: 79

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

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