Its been 2 months since we decided we want to invest in property and we are getting closer to knowing what we want to achieve and how to achieve it.
There is one thing which to me is still a “myth” as I have not come across any properties that are positive cashflow from the start!
I know that as a guideline for rent it is sometimes seen as, if the property cost $300k then rent would be approx $300/week. Is there some sort of guideline re cashflow properties? I’ve heard of formulas (which are quite far fetched!) and its not what I’m after. I’m not looking for a quick fix either. I’m just curious as to whether properties need to be brand new for them to be cahflow positive (maximum depreciation), or maybe very cheap and then refurbish. Can a property with a purchase price of say $700k be cashflow positive? Am I right in saying that units are generally more difficult to be cashflow positive? I say this because the strata and body corporate fees etc always add up quite a lot!
Sorry for the long post, but just throwing this out there to see what I can learn from others who have been doing this for a while and have probably noticed a “pattern” when looking for such a property. I know there are always exceptions, but I’m just after the general idea!
Thanks and hope 2010 will be a great year for you all!
There is one thing which to me is still a “myth” as I have not come across any properties that are positive cashflow from the start!
I know that as a guideline for rent it is sometimes seen as, if the property cost $300k then rent would be approx $300/week. Is there some sort of guideline re cashflow properties? I’ve heard of formulas (which are quite far fetched!) and its not what I’m after. I’m not looking for a quick fix either. I’m just curious as to whether properties need to be brand new for them to be cahflow positive (maximum depreciation), or maybe very cheap and then refurbish. Can a property with a purchase price of say $700k be cashflow positive? Am I right in saying that units are generally more difficult to be cashflow positive? I say this because the strata and body corporate fees etc always add up quite a lot!
Sorry for the long post, but just throwing this out there to see what I can learn from others who have been doing this for a while and have probably noticed a “pattern” when looking for such a property. I know there are always exceptions, but I’m just after the general idea!
Thanks and hope 2010 will be a great year for you all!