Best + Cash Flow areas?

Hi guys,

Just trying to find areas to research + Cashflow opportunities.

Any opinions of where good positive cashflow area are will be much appreciated.

If anyone know a website or resource for finding + cashflow properties too that would be awesome.

Cheers
 
Hi guys,

Yeh i thought/thinking about Hedland or Karratha.
I can't afford it tho. min $600K for an old run down fibro.
Looking for somewhere around $300K (even possibly unit).
I'm interested in qld or wa mining towns and open to any ideas, but just wondered if any one out there had an easier way of finding positive cashflow properties without looking at realestate.com.au

Cheers
 
What is your ultimate goal or what are your trying to achieve from purchasing a positive gear/cash flow property?
 
Hi Rixter.
I own 3 IP. 2 are pretty much neutral and 1 is negaitely geared. I have just put a deposit on another negatively geared IP in Gladstone. Being on good wages in Hedland i'm ok with negative gearing for now, but i don't plan on living in hedland forever. So I am looking to balance my portfolio a bit to ease negative cash flow if/when i take a pay cut to live somewhere nice. Thats the short term plan... long term i'm looking for financial freedom..
 
Foxt

Unfortunatley you are not the first and definitley not the last, try a search on the subject "Trying to find a house for under 300k that has great rental yield and will experience extreme growth in the next 2 years" and then the post says something along the lines of.

I don't know where to look so I am hoping someone on here can help me and then generally after 1 response we never here from them again.

Read this as a bit negative if you wish Foxy but if you think you can lob along here put a hand out and then for the life of me you are going to take there word and go and buy it if you get a response then good luck.

Do some research, work out what your goals are, do some research, understand your own financial position and did I mention to do some research.

People on here will assist if don't just give them a dart and you hold the dartboard of Australia and expect to be a millionare in 2 weeks.

Jezza
 
Thanks for that Jezza.
I understand what you are saying. I don't expect to get where i'm going in 2 weeks(it would be nice tho).
What i am asking here and in any other posts is for opinions from other peoples experiences. Like brainstorming, throw up lots of ideas and then go and do my own research. Don't get me wrong i'm not asking for people to "tell" me where to buy so i can blindly follow thier advice.

Rixter, thats a good question and one that i can't answer very well to be honest. For now i'm building as big a portfolio as i can, and i can see some holes in my strategy hence, why i'm starting to look at more positive cashflow properties. Originally i thought if i got to 8 - 10 properties eventually i'd have so much equity i could just draw out $50k+ a year the rest of my life. Sounds simple hey... haha

I'm a firm believer of doing something is better than doing nothing and it is very hard to get good advice from people that have "done it". So i'm learning as i go and changing my strategy all the time.
 
Foxy

Good response and for that I will throw you a lifeline. If you want positive cashflow properties there is heaps about, go to most mining towns and regional centres. I do however think ( and this is my opinion) if your goal is to have 50k equity to live off every year you may not reach your goal by targeting these properties. I too had/ still have a similar goal and I buy in major cities and yes I do take a hit in the first 2-3 years but aslong as I am diligent on my rent and keep it at between 4.5 -5% minimum yield against the value of the property within 3 years I find it becomes cashflow positive against rent ( not including depreciation). I know it is a cliche but my evidence still has properties increasing 10% minimum each year for major cities like Melbourne ( can't comment from experience on other states).

This is why I say to understand your goals and your finances as short term goals may suffice you paying back bank the bank easier but it may not be the answer to your long term goals

Jezza
 
Are any of your IPs currently in Hedland?

You may be surprised at the impact of additional cashflow of 10%+ in Hedland allowing you to borrow more to get into a $600k rather than $300k property.

A 10% yield property should actually increase your future borrowing capacity, not diminish it.

I'm interested in your Gladstone purchase, I am just in the process of buying there also. Do you see the area as the next Hedland?
 
Cheers Jez, appreciate your comments.
Hi Matt,
I have and i am seriously considering Hedland. I would probably buy an IP here tommorow if i could get money from the banks.
So yeh i decided to buy in Gladstone instead, specualting that it will be the next hedland. (at half the price) I haven't been to Gladstone (yet) but from my research it is more diverse than hedland and has the potential to be a bigger port.
I know alot of articles and people out there think Gladstone could be the next port hedland. I think it will get great CG and rents will rise sharply, but I feel that they have different dynamics.
Gladstone has alot of new etates and land available(compared to hedland. Land just isn't being released anywhere.)
BHP pay 80% interest upto $500K to employees to buy PPOR in Hedland. (Not sure if any of the companies in Gladstone have these similar schemes but i would love to find this out??) Oh yeh bhp also pay upto $1000p/w rental assistance. Fortescue metals also have a similar scheme.
I assume LAHA would apply in gladstone like up here.

Hedland is a one resource town pretty much, and people come here to work, not neccesarily to live. I think gladstone would be a better place for people to live so thier population growth should be maintained longer term.
They are just finishing off massive(sorry can't remember the exact number) camp for FIFO workers in hedland and it seems that FIFO is becoming the preffered way to get labour up here. Although i'm enjoying living here it really isn't for the majority of people. And after a few summers lots of people(particulary the wifes and kids) get sick of the joint and decide to move on.
 
Thanks for your excellent response Foxy. I have been saying for a while that I see Gladstone as the next Port Hedland or Karatha. As soon as the major projects start, I can see huge rental and capital growth.

I have read reports that say they need an extra 10,000 employees during the construction phase of all the proposed projects over the next 5 years. In order to attract people to come in large numbers, they will need significant incentive schemes to compete in the local market and for experienced workers overseas.

I just purchased my first IP in Gladstone, a nicely renovated, 3 bedroom, fully furnished house, ready for out of town workers to move into. It is also on 868 sqm and zoned high density, so plan to eventually move the house to another block and put up 6 units.

I will be amazed if Gladstone prices don't double in the next 5 years and they could easily exceed that.
 
Have you looked at Rocky (Rockhampton), 45 min from Gladstone?

Picked up a unit there over the weekend $135k, renting at $250pw.

Last time mining in the Bowen Basin took off, Rocky had a surge in prices/rent. The Bowen Basin is picking up again as are it's neighbours Gladstone and Mackay.
 
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I hope so Matt. Its pretty exciting to read about. I wish the banks would give me more money to buy there.
Cheers Icarus, I'll be having a look at Mackay and Rocky. Congrats on that unit, that is exactly the kind of thing i'm looking for.

Cheers
 
I have just started doing some research in Gladstone. I am in WA and was wondering if anyone else not in the QLD had used a buyers agent or knows of a couple of good REA to have a chat too about investing in the area.

I note there is South and West Gladstone, do people have an opion on these nearby areas in terms of growth etc.

Thanks.
 
Another option to consider is maybe student accom around the uni in Newcastle. Rented by the room they can be pos. All sorts of negatives to consider but hey its another option. Also has the advantage of being in a major centre not so reliant on any one industry.
 
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