Cashflow positive in Perth

[TheBacon]

Hello all,

The Mrs and I are finally in a position where we can purchase our first IP !!!

Apparently lenders will give us up to 400k total for property. We already have a PPOR (with mortgage) worth about 170k, leaving $230k to play with as far as an IP is concerned.

I live in Perth and am interested in Perth props mainly, possibly also country WA.

I have an OK salary and the Mrs works part time with an OK part time salary. We are also expecting a littleBacon this year, cutting off my wifes income for a while (at least 6months, probably 1 yr). So, we want cashflow +ve props, we dont have enough income to negative gear effectively. And cash will be (VERY) tight once my wife quits work.

My question is... Within my price range where in WA can I find solid cash-flow positive properties? Any particular suburbs? Any particular type of dwelling?

Any advice greatly appreciated.

TheBacon.

[Rixter]

Hi TheBacon,

First off, Congrats on your decision to buy your first IP & on the intending arrival of your piglett ;)

I have a number of cashflow positive Ip from day 1 scattered around the Perth metro area. Heres my buying benchmarks on what I look for in a Property & a hint on where to look.


At a Macro Level I Look for areas -

Where the govt is injecting money into redevelopement works .

Where Private Enterprise is injecting money.

Areas with good roadworks & arterial acesses.

Good Public Transport services with walking distances

Close to Major shopping complexes, Schools, Medical Facilities, Recreational Facilities.

Nearby or next to High Employment areas.

Inner metro suburbs or close by to Satelite City Suburbs.

Undervalued areas compared to neighbouring suburbs


At a Micro Level I look for -

1/ New or near New IP for maximising my Non Cash deductions & lower maintenance cost.

2/ Villas, Townhouses, Units for numerous reason some of which are -

2a/ Lower Maintenance Costs,

2b/ Less up keep for tenant,

2c/ More tax effective compared to buying a house,

2d/ Lower entry level therefore more inducive in helping to accummulate a larger number of Ip's within my portfolio over the long term,

2e/ And finally but by no means the least, a growing future demand as the babyboomers come into retirement and start downsizing from their large older family home for lifestyle and economic reasons.

3/ Security features ie Doors, Windows, Electronic Alarms etc

4/ Spacious

5/ Comfortable ie A/C , heating etc.

Hope I have been of help.