Cash flow positive properties. Where do Dymphna & Helen Collier properties recommend

[investor2009]

Yes thats well and truly run now. The Wife worked in Karratha years ago just before capital quadrupled.

I think they have completed a Karratha project, however, because the market has turned and prices and rents have fallen back, I think investors may get burnt with this project, mining towns always going to be higher risk.

 

[JT7]

Anyone can buy that in Darwin so thats just normal.
To me, cf+ is double rent to mortfage. Ie: 200k $400p/w rent

Fantastic.

Maybe we should all be investing in Darwin....

 

[JT7]

Anyone can buy that in Darwin so thats just normal.
To me, cf+ is double rent to mortfage. Ie: 200k $400p/w rent

I'll clarify that also...

The property was purchased through an SMSF at an 80% LVR.

$280k Purchase; $330 W/K rent.

$9500 depreciation on first year of holding at 15% (SMSF)

6 year old Vanilla type property cf+ in a capital city held in a SMSF...

I'd be interested to see what $200k would buy you in Darwin though.... Don't like to assume but.... I would imagine older property for $200k so increased maintenance issues...?

Interesting though investor2009. Can you provide some links on re.com to some comparable properties...? Does sound interesting....

 

[Alex P Keaton]

I found this:

Brisbane flood history - from the 1800's and on

Interesting reading

 

[impala67]

Often there is no one 'area' for cash flow positive unless you up the risk - ie mining or holiday units.
BUT there are cash flow positive IPs all around Australia if you do your homework and be prepared to put in some actual work, not just go to a free seminar or ask people on the internet.
Things to do
- get suburb reports and find the ones with the highest yield then look into the area and work out why that suburb outperforms others
- work out what you can do to increase yield on a property, ie buy something run down and do a cheap reno, find something that could easily be converted from 2 bedroom to 3 bedroom, find something you can put a granny flat on, convert to furnished rental, convert to short stay holiday accommodation
- cash flow positive isn't always about the rent exceeding the mortgage payments it can be rent minus mortgage minus costs BUT add in a healthy dose of depreciation so look at more recently built places to get the most depreciation
- look at building a house/villa as if done well many of these are cash flow positive but you have to be able to sustain the holding costs during construction

---
I used to think I would never find one either except mining towns. Basically I did the same thing as points one and two and it seems to work all the time as they are in all states and for all prices. At some long term future point, I'll be looking to turn IP#1 house and block into a duplex + units at the rear.

 

[superAndrew]

I'm new to this forum and this is my first post

There are plenty of positive cash flow properties in Australia and not just in mining towns.

Andrew

 

[redwing]

I think they have completed a Karratha project, however, because the market has turned and prices and rents have fallen back, I think investors may get burnt with this project, mining towns always going to be higher risk.

This is Derek's group isn't it?

The below KTA project was fully subscribed

Total Outlay $395,000
Eos Estimation $550,000
Est Capital Profit $155,000
Est Rent Return ($1300/week) 17.1%

 

[VernSilver]

Don't ask the experts where to buy - even Dymphna says

I am thinking of adding a cash flow property to my portfolio.
I always worry about the risk with these locations.
There are a lot of spruikers pushing the merits of cash flow properties. I have attended a couple of introductory courses but they never really say where they are telling their students to buy. Where are these locations???
I dont want to buy a mining town.

Can someone give me some ideas for safe-ish locations with potential for capital growth and positive cash flow so I can start doing some homework?

Hi, I know it's been a while since this question was asked but I wanted to point out (as a Dymphna Student) that she doesn't ever expressly state a town or area to buy (and certainly never a property)... sometimes she has areas to look at that she thinks are going to grow but they are only pointers... you have to use her "Gris analysis" method (spreadsheet) to check it out for yourself.

I've used investar to do the research before - that can be helpful but you have to know exactly what you are looking for. (Sorry... bit vague there - too hard to be specific) .(and BTW she's moved on from mining towns a bit)

I think she talks about grid analysis in a free webinar she does once or twice a week. or check out her youtube channel: https://www.youtube.com/user/iPropertyTraining

This is not her normal one this one has a bunch of content from one of her paid events.

 

[MTR]

This is Derek's group isn't it?

The below KTA project was fully subscribed

Total Outlay $395,000
Eos Estimation $550,000
Est Capital Profit $155,000
Est Rent Return ($1300/week) 17.1%

Yes, I believe so.

My point is that I don't believe they ever achieved these results they quoted because they got the timing wrong.

We have seen 25% decrease in values and rents over the last 2 years in Karratha and other mining towns. I actually saw one of these (EOS) properties listed for rent and it was well below estimated rental returns. My assumption was that investors would also have problems selling these.

 

[mmmggg01]

Often there is no one 'area' for cash flow positive unless you up the risk - ie mining or holiday units.
BUT there are cash flow positive IPs all around Australia if you do your homework and be prepared to put in some actual work, not just go to a free seminar or ask people on the internet.
Things to do
- get suburb reports and find the ones with the highest yield then look into the area and work out why that suburb outperforms others
- work out what you can do to increase yield on a property, ie buy something run down and do a cheap reno, find something that could easily be converted from 2 bedroom to 3 bedroom, find something you can put a granny flat on, convert to furnished rental, convert to short stay holiday accommodation
- cash flow positive isn't always about the rent exceeding the mortgage payments it can be rent minus mortgage minus costs BUT add in a healthy dose of depreciation so look at more recently built places to get the most depreciation
- look at building a house/villa as if done well many of these are cash flow positive but you have to be able to sustain the holding costs during construction

Well said!!!

 

[superAndrew]

Based on my research 27.3% of Australian suburbs are recording less than 4% yield. More than half of suburbs (57.5%) are yielding between 4 ? 6% annually. 13.5 % are yielding 8 ? 14% and 1.3% are yielding above 14% per annum.

Top 1 and 2 suburbs are located in NSW and yielding between 33% and 30% per annum. On third place is a suburb in QLD at 28.03%.

Andrew

 

[mmmggg01]

I think she talks about grid analysis in a free webinar she does once or twice a week. or check out her youtube channel: https://www.youtube.com/user/iPropertyTraining

This is not her normal one this one has a bunch of content from one of her paid events.

Would you please kindly tell which video is about the grip analysis? I've gone through all of them but didn't have a clue. Many thanks in advance!!!