What is your Cash Flow Position of your IPs?

What is Cash Flow Position across your IP Portfolio?

  • Over 40k Postive Cash Flow

    Votes: 10 6.0%

  • 30k - 40k Positive Cash Flow

    Votes: 4 2.4%

  • 20k - 30k Positive Cash Flow

    Votes: 3 1.8%

  • 10k - 20k Positive Cash Flow

    Votes: 5 3.0%

  • 0 - 10k Positive Cash Flow

    Votes: 16 9.5%

  • 0 Neutrally Geared

    Votes: 14 8.3%

  • 0 - 10k Negative Cash Flow

    Votes: 54 32.1%

  • 10k - 20k Negative Cash Flow

    Votes: 39 23.2%

  • 20k - 30k Negative Cash Flow

    Votes: 8 4.8%

  • 30k - 40k Negative Cash Flow

    Votes: 2 1.2%

  • Over 40k Negative Cash Flow

    Votes: 13 7.7%
  • Total voters
    168
S

sash

Well....the GFC is now a distant memory almost over 3 years since it first started. :)

We had rates under 5% for a short while and now they are headed for 8%.

Given this....I thought it would be great to know how peoples cash flow postions are at this point in time?

At point where interest rates were about 5% I had a cash flow position of positive CF 60k per annum....alas this did not last but still have a CF+ position but it is more like 38k!:eek:

Also,in terms of depreciation benefits.. most of this gets banked and only about 2k in tax is paid on this. Really happy about this. This is because i have policy of renovating at least 2 properties a year. This increases my equity as well as continuing to add depreciation credits as they drop.
 
Last edited:
wow ummmm. After all tax benefits probably 6-7k CF- ill be buying some more soon which should put me CF- 18-19k after benefits (2x IP 90% LVR, 6.5% gross yield)

Regards,

RH
 
Mine was about -$100k but after having to let the dev site go it's halved to about -$50k. The GFC is still a 'recent' memory for me.
 
Just as I was about to vote, I realised that what I was going to post was a lie. I had calculated the rate that the portfolio was cf+, but forgot that I also pay my PPOR mortgage out of the positive cashflow from the IP's. Caught it just in time and I've posted the correct figure now.:D
 
Holy sheepsh%t batman....neg 100k....ooucchh...

Did you sell the Development site for a loss and how are you paying for the 50k negative CF? Is this out of wages??

ianvestor said:
Mine was about -$100k but after having to let the dev site go it's halved to about -$50k. The GFC is still a 'recent' memory for me.
Click to expand...
 
sash said:
Holy sheepsh%t batman....neg 100k....ooucchh...

Did you sell the Development site for a loss and how are you paying for the 50k negative CF? Is this out of wages??
Click to expand...

Yes huge, and yes wages. Learnt some big lessons and doing it tough now. The dream is to get back into the development game in 2 or 3 years, but with something smaller next time. That "5-townhouse" site was way more than I could chew.
 
skater said:
I also pay my PPOR mortgage out of the positive cashflow from the IP's.
Click to expand...

I didn't count my PPOR, that's an additional -$50k... going to sell and move :eek: Pretty much starting at the bottom again. On the bright side, I haven't lost the drive, so I'll get it all back eventually.
 
ianvestor said:
I didn't count my PPOR, that's an additional -$50k... going to sell and move :eek: Pretty much starting at the bottom again. On the bright side, I haven't lost the drive, so I'll get it all back eventually.
Click to expand...

OMG! I've only got one thing to say.......OUCH!
 
Surely PPOR would be excluded by nature of it's use.

My PPOR is is owned by someone else and I pay them rent - that pushes me into CF- territory. :rolleyes:
 
Mate, don't know if you did thread about this but would be good to know the details from a learning perspective.

This sort of stuff is huge.....it would save some of us the pain in terms of your exeperience.

Don't know how you feel about sharing your experiences.
ianvestor said:
Yes huge, and yes wages. Learnt some big lessons and doing it tough now. The dream is to get back into the development game in 2 or 3 years, but with something smaller next time. That "5-townhouse" site was way more than I could chew.
Click to expand...
 
sash said:
Mate, don't know if you did thread about this but would be good to know the details from a learning perspective.

This sort of stuff is huge.....it would save some of us the pain in terms of your exeperience.

Don't know how you feel about sharing your experiences.
Click to expand...

Yes, I agree. Although you are obviously going through some pain, it might be a good learning opportunity for the rest of us.
 
sash said:
Mate, don't know if you did thread about this but would be good to know the details from a learning perspective.
Click to expand...

No I haven't posted anything about it until now.

Here's my recent life story:
  • 2003-2006 built up a very modest portfolio on a $50k wage.
  • Mid 2007 suddenly earned an insanely high income through I.T. endeavours.
  • Start of 2008 bought a nice PPoR for $750k and also dev site for $1.22m.
  • 30 seconds later, the GFC started kicking in. I lost the income, and all the mortgages from that point onwards got paid out of the savings.
  • 2010 after 3 years of delays in dev site, no chance of getting construction loan and buffer down to $0. Sold it for $1.1m.
  • 2011 paying for remaining portfolio out of a somewhat modest wage again, but can't keep it up so I'm selling pretty much all of it, including the nice PPoR. All equity in said properties will be going straight to the ATO for late payment of some rather big tax bills. So I'll either rent or may possibly keep and live in one of the cheapies.
  • 2012 earning back above $200k p/a again, paid off some principle on the cheapy.
  • 2013 earning an insanely high income again, purchased another dev site.
  • 2015 finally bought the Jag I've had my eye on.
Biggest lessons:

1. If you have a goal in mind to retire at 33, and it appears to fall in your lap at 31, stick to your goal and just keep working for 2 more years anyway. Taking the time off was awesome, but not working cost me so much more than expected, and at 32.5 it's almost certain I'll miss my deadline now.

2. Even if you can earn 20% return on your cash elsewhere, it's never worth it to 'borrow' from the ATO at 12%.

3. Just because a company you hire has a good reputation, doesn't mean you can take your eye off the ball. Be assertive and on them like glue. And don't leave it too late to take issues to the higher-ups if your current contacts aren't cutting the mustard.
 
Wow....that is gold! :)

Love your resilience....won't be surprised if you end up buying that Jag!

Thanks for sharing and may good fortune seek you out in the future. ;)



ianvestor said:
No I haven't posted anything about it until now.

Here's my recent life story:
  • 2003-2006 built up a very modest portfolio on a $50k wage.
  • Mid 2007 suddenly earned an insanely high income through I.T. endeavours.
  • Start of 2008 bought a nice PPoR for $750k and also dev site for $1.22m.
  • 30 seconds later, the GFC started kicking in. I lost the income, and all the mortgages from that point onwards got paid out of the savings.
  • 2010 after 3 years of delays in dev site, no chance of getting construction loan and buffer down to $0. Sold it for $1.1m.
  • 2011 paying for remaining portfolio out of a somewhat modest wage again, but can't keep it up so I'm selling pretty much all of it, including the nice PPoR. All equity in said properties will be going straight to the ATO for late payment of some rather big tax bills. So I'll either rent or may possibly keep and live in one of the cheapies.
  • 2012 earning back above $200k p/a again, paid off some principle on the cheapy.
  • 2013 earning an insanely high income again, purchased another dev site.
  • 2015 finally bought the Jag I've had my eye on.
Biggest lessons:

1. If you have a goal in mind to retire at 33, and it appears to fall in your lap at 31, stick to your goal and just keep working for 2 more years anyway. Taking the time off was awesome, but not working cost me so much more than expected, and at 32.5 it's almost certain I'll miss my deadline now.

2. Even if you can earn 20% return on your cash elsewhere, it's never worth it to 'borrow' from the ATO at 12%.

3. Just because a company you hire has a good reputation, doesn't mean you can take your eye off the ball. Be assertive and on them like glue. And don't leave it too late to take issues to the higher-ups if your current contacts aren't cutting the mustard.
Click to expand...
 
Not sure if I answered correctly, but I chose the 20-30K.
We have given ourself a budget of $15K year living expenses, and the rest is used paying off debts.
 
Roughly $3,500 neg on my properties but double this for my ppor. Plenty of room for any upward rate movements.
Sleeping well. I hope everyone survives the lumps and bumps of this game.
 
i'm on -10k neg geared...but still on the accumulation stage. Neg geared will get worst in the near future :p

but i'm setting myself up with some buffers and am getting some cashflow from other investments so it's more than manageable for now (i can probably take another 1.5% in rate rises for this year)...of course I haven't jack up my rental rates yet...be doing that in the next few months :D
 
kathryn d said:
Not sure if I answered correctly, but I chose the 20-30K.
We have given ourself a budget of $15K year living expenses, and the rest is used paying off debts.
Click to expand...

kathryn, that's great that you have your living expenses and debt repayments coming out of cashflow postive rents. Are you planning to still accumulate more or is that phase over now ?
 
We bought our first IP during the FHB rush of 2009, used 10% equity deposit from our PPOR and 90% loan from another lender to a total of 100% debt. Since we are bleeding to the tune of over $10K annually, we decided 2011 would be the year we focus on paying down our debt as much as possible, before looking at selling our PPOR to payoff more debt and upgrade to a larger and older 3BR unit / townhouse in 2012.

Good thing for the payrise with my new job and my wife planning to return to 4 days work now that Kid 1 has started childcare. Another property goal is to update the IP's bathroom and install vertical blinds, so we can up the asking rent and ride the rising rent wave. :)

Got to be careful not to be so highly leveraged ever again.
 
You must log in or register to reply here.

Similar threads

Z
Goal is to live off rent in the future how?
Replies
18
Views
4K
srini
S
L
A few quick questions from a newbie
2
Replies
20
Views
4K
Of The Vultures
Of The Vultures
M
Cash flow positive property
Replies
11
Views
2K
mflying
M
T
First IP advice
Replies
6
Views
1K
Touristy
T
Z
Starting Over Again
Replies
12
Views
3K
danwatto
D
Back
Top