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

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?
 
Assuming Borrowing 105% a couple of months ago I could find some in Goodna, Logan Central and Woodrige. They're all gone now.
 
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I remember a 6 or 7 years old 4x2x2 selling for 265K rented at 335. A friend of mine inspected a similar one the other day. offered 280K. The rea told him they won't accept less than 305K.
 
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?

First up, I don't know where these promoters/educators talk of and of course you won't find out at the teaser events unless you part with some cash and join their circle/course/team.

Perhaps a little about yourself may help others here to give you some more relevant opinion a little more specific to your situation.

What type of current holdings and LVR do you have?
What's your cash flow position like right now overall within your portfolio?
What is your budget based on future LVR and current cash/equity and likely servicibility?
Have you considered moving on to commercial IP's to improve your yield?
 
I remember a 6 or 7 years old 4x2x2 selling for 265K rented at 335. A friend of mine inspected a similar one the other day. offered 280K. The rea told him they won't accept less than 305K.

I grabbed one last year (6 year old 4/2/2 $280k Rent $330 wk) in Redbank Plains for our SMSF. Great depreciation. Would love to have been able to grab another but I think that window has now closed.
 
OK player,
I have 1 IP in Perth, a 1 bed unit in the centre and 1 being built also in Perth by EOS armchair.
1st one value 450k, loan 470k, rent $450pw
2nd will be estimated value 525k, loan 426k, rent $550pw. Completion date feb 2015

Bought the first one in 2010 and have seen no growth at all.
I will hopefully have some equity in 12 months time but am think of buying a cash flow property to go with these two.
 
Depending on your appetite for risk, would you consider a regional hub heavily influenced but not dependant on mining. At the moment due to a number of factors the commodity cycle is somewhere near the bottom. However, I do believe in the long term factors surrounding energy and the need to secure it.

Due diligence is the key however, in times like these when commodities are out of favour, it can be the time to pick up absolute bargains IMHO. I have property in Emerald in Central Queensland. The rental market is soft at the moment but that is all about to change in the coming months and years with the federal approval of GVK Hancocks Kevin's Corner coal mine.

I have seen some bargains on the market at the moment in this climate and now is the perfect time to grab something because they won't be round for long now as these massive projects come into fruition.

Why not have the best of both worlds... CF and CG.

http://gvkhancockcoal.com/images/Do...ment clearance for Kevin's Corner Project.pdf
 

Nice OTV.....

Looks like the window might be open after all :p

You thinking about making a play for this one?

Plenty of renters out that way and lots of infrastructure investment going on. I took a trip up to Ipswich to have a look for myself and was impressed. When i was completing my dd on the LGA it proved to be a real growth corridor and the projected figures on ABS were extremely encouraging. As mentioned just make sure you do your dd on the flood maps....

Good luck with it mate
 
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?

Any locations in VIC that is cash flow positive?
 
It sounds like Queensland is the go.
what do you think the capital growth in Ipswich/good a might be?

Ipswich is more a region rather than a soburb. The core centre being the Ips town centre.

There are lots of infill development opportunities in and around the region, and still quite an amount of broad acreage land for development, so if land supply can meet demand, CG may be a little limited

Residex estimates 7% for the next 5 to 8 years .

Seeing its been going sideways and backwards since the 2008 mini boom, there may be something in that

ta
rolf
 
It sounds like Queensland is the go.
what do you think the capital growth in Ipswich/good a might be?

As Rolf said, Ipswich is a pretty big area. Personally, I expect (or at least hope!) areas near the CBD to do quite well, while prices in the outer estates may be limited by the growth in supply.
 
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?

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
 
OK player,
I have 1 IP in Perth, a 1 bed unit in the centre and 1 being built also in Perth by EOS armchair.
1st one value 450k, loan 470k, rent $450pw
2nd will be estimated value 525k, loan 426k, rent $550pw. Completion date feb 2015

Bought the first one in 2010 and have seen no growth at all.
I will hopefully have some equity in 12 months time but am think of buying a cash flow property to go with these two.

With your first project with EOS, projects they have been promoting to investors have all been returns of 20% profit on completion, so this did not happen, negative equity???

Second project is an estimate, have you checked out comparable sold properties??
 
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