Positive/Neutral Geared Properties in Melbourne - Where are they?

Hi all,

Ready and looking to purchase first investment property. I understand quite a lot of people prefer negative gearing as they give more growth, and of course claiming on tax etc etc. But, I'm after a positively geared property, where the rental covers the interest, with a little bit left over, even if it's like $10.

Without getting into the positive vs negative arguments, any suggestions on of these sorts of properties in Melbourne? Every property I see, I do the maths using online calculators - once I work out all the expenses, it ends up coming up -ve.

Do these +ve properties only exist in rural areas?

Cheers,
Ozzie
 
Without delving into the issues of your statement "people prefer negative geared properties" and just focusing on the question you are asking then Melbourne itself you will be very hard pressed. You can find them but your likely to get better CF+ looking more regional.
If your happy to forego capital growth and concentrate on CF then there are plenty of options. Jump onto realesate.com and start playing around with the investor tab.
 
I did see some positive geared properties in Melbourne in 2008. ;)

I wouldn't outright say you can't find cash flow properties in Melbourne, but I'd be very impressed if you do find something at this point. You need to be very creative to achieve this outcome. Most rental yields are around 2%-3% of the purchase price on most metro property.

It might be possible to get close to neutral in some of the outer suburbs or satellite suburbs.

If you're wanting to get decent returns close to home, try looking at Ballarat.
 
Melbourne will be hard to get CF properties.

Look at other Vic satellite cities..like ballart,bendigo,Geelong etc. When going regional consider higher coucik rates.

Or

You could buy a fixer up prop in Mel..
Do reno..add equity n possibly cash flow neutral..
 
Very hard to find +vely geared property in Melb.

Would look at -vely geared and use depreciation/tax benefits to offset.
 
What are peoples opinions in regards to buying a house in Morwell for say 80k, renovating/living in and ideally flipping for around the 140k+ mark cgt free? Or worst case scenario have it revalued and positive gear it, pay no cgt for 6yrs. Sounds a bit of a stretch but some of those old mining cottages in better condition are going to 190k+ under contract?

The town isn't exactly a ghost town either, it's a dive but the main street looks rather prosperous to me.
 
Thanks for the replies!

I've read that Norlane, VIC is looking to grow as there are some developments in the area. I've also read that nobody likes this area for some reason, but I'm thinking of taking a punt... Buying something already tenanted, with CF+. Even with the council high rates in the area, and after all expenses, it's still CF+ which is great and provides a level of comfort for a scared first time investor like me.

I understand the benefits of negative gearing and lowering your taxable income and all that, but for me, I think its riskier to be left out of pocket every week/month and wait til tax time to get some of it back.

Especially if I lose my job or something, I'd be screwed. CF+ will pay itself off at least, with money on top to cover the expenses, with the hope that theres growth in a year or two.
 
It's you first property. For the sake of $50 per week go for something that's going to give you growth which will accelerate your equity. This will be your spring board for further acquisitions.
 
Especially if I lose my job or something, I'd be screwed. CF+ will pay itself off at least, with money on top to cover the expenses, with the hope that theres growth in a year or two.

Lower this risk by having a good cash buffer that will cover it in the event you lose your job. You will need one anyway for things that pop up. Also get insurance and fix mortgage rates if needed. There are things you can do to lower risk.
 
Hi all,

Ready and looking to purchase first investment property. I understand quite a lot of people prefer negative gearing as they give more growth, and of course claiming on tax etc etc. But, I'm after a positively geared property, where the rental covers the interest, with a little bit left over, even if it's like $10.

Without getting into the positive vs negative arguments, any suggestions on of these sorts of properties in Melbourne? Every property I see, I do the maths using online calculators - once I work out all the expenses, it ends up coming up -ve.

Do these +ve properties only exist in rural areas?

Cheers,
Ozzie

Check out the Northern subs. last year we bought a villa unit for $280k and they gets $300pw in rent. Pretty close to neutral with today's interest rates,

The Y-man
 
Lots in Melton, Werribee, Tarneit, etc.

Bit of a reno and you should get a neutral to positive property.

The numbers in Geelong are much better.
 
Hi all,

Ready and looking to purchase first investment property. I understand quite a lot of people prefer negative gearing as they give more growth, and of course claiming on tax etc etc. But, I'm after a positively geared property, where the rental covers the interest, with a little bit left over, even if it's like $10.

Cheers,
Ozzie

We have 2 properties that are certainly positively geared in Melbourne - both are rented on 6-month leases, fully-furnished. This makes it a bit more work finding tenants every 6 months, but it results in a positive position of $2-7000 on each property per annum, depending on whether you take into account non-cash depreciation benefits.
 
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