Who has bought a GENUINE cashflow+ IP in the past 12 months under $300,000?
- Thread starter beachy
- Start date
255k purchase price? re.com.au isn't showing that much anywhere near that price point, VERY good buy?
City/town where you bought (address is not needed for privacy reasons):Auckland nz ___________
Purchase price: 197000
Income: 340x52 $17680 vs
Expenses
Interest rate: 6.1- $1000pm
Loan amount: 197000
Rates: 1200
Insurance: 1100
Landlord insurance: Inc above
Prop Management fees: 1300
CASHFLOW+ : $2000+
bought more than 12 months ago. 100% finance. 25km to cbd. prematurely fixed so will look better when that ends and can get %1 or more less.
cheers
Purchase price: 197000
Income: 340x52 $17680 vs
Expenses
Interest rate: 6.1- $1000pm
Loan amount: 197000
Rates: 1200
Insurance: 1100
Landlord insurance: Inc above
Prop Management fees: 1300
CASHFLOW+ : $2000+
bought more than 12 months ago. 100% finance. 25km to cbd. prematurely fixed so will look better when that ends and can get %1 or more less.
cheers
yeh i thought it was a bargain. Was on sale earlier in the year for 309K+...slowly kept coming down to 279K+. I put an offer in for $250K...and within 1 day had a $255K offer accepted. Was a bit shocked, but the market was quiet slow around that time. I did get a valuation done in April however the stupid valuer kept it at $255K, which I know is undervalued by easily $20K-50K.
What is re.com.au?
What is re.com.au?
I think for an IP to be truly CF + for the purposes of this thread, we need to have the loan to be 105% of the purchase price to cover the costs of the transaction without the investor using one cent of their own money. And these are hard to find.
Using the figures in the post you've just quoted- a 105% loan would equate to just under $15,000 interest. It's still positive by $1,800.
Purchase price is 330k
105% loan is 346500
4.79% interest is 16597 per annum interest which would make it cash flow negative.
and PM fees haven't been accounted for either.
You are right on the interest, I was wrong, sorry.
But it's still CF+, even if not by much. Total outgoings on a 105% loan, with interest at $16,597.35, come to $20,031.35. Income is $20,280.
Whether that small income is satisfactory depends on what you want out of an investment. If you need the income yourself, it's not going to do much for you. However, if you have a high income, you don't need income from the investment in the short term, and you have an investment which is not costing you money, which will probably have a growing income and value as time goes by.
Cash flow properties can be difficult to come by, but not impossible. I'm in a situation where my entire income comes from investments. I have just purchased two shops for $190,000 returning $28,000 pa. If I had a job, I'd be looking primarily for growth properties, where I would be in a position to contribute out of my income.
Properties which I bought 10 and 15 years ago are now strongly positive.
The sheer attraction of cash flow positive IPs is that it does not detract from one's lifestyle right now and will actually enhance it. Even if it is CF positive by $5 per week, it means a "free" chai latte every week.
Whereas with the CF negative properties, we take a risk that we are actually going to be around in 10 years time and are speculating on capital growth.
But well done on being able to support a lifestyle based on income purely derived from investments. I think that this is the goal of everyone who visits this forum.
There's definitely merit to it. I don't know if it should be everyone's objective on this forum. Many have and continue to do very well, if not better, despite not going after cashflow.
I know you'll ask, "but can this capital growth be replicated in the future." Fact is, you've asked the same thing 12 months ago, and hindsight has proven it can be, and when it moves, it moves a lot faster than the extra 1 or 2% yield you'll be getting from cashflow.
I know you'll ask, "but can this capital growth be replicated in the future." Fact is, you've asked the same thing 12 months ago, and hindsight has proven it can be, and when it moves, it moves a lot faster than the extra 1 or 2% yield you'll be getting from cashflow.
I did this on capital growth properties. I put a bit of spare income aside, and it's paid back many times over now.
It is a risk. It's true that you might not get the growth. Or that you may not be around to get the benefits.
But that growth set me up for business, and for an income now. I would not have been in the position I am now if I had focused purely on cashflow.
Hi Mate,
I just had a look at RE.com.au and found the average rent in the Elizabeth area is $270 pw. --- your $450 pw is actaully quite good ... does it have a granny flat?
cheers
He said right there in the post it was a pair of semis
Dear fellow investors,
from reading the threads, history of investing didnt really change much.....
all mentioned of cash flow properties are either in regional areas or possible in mining towns........
Hi Richard,
Were you in the investment property magazine?
I think i read that you had mass amount of properties? if you dont mind me asking , did you buy alot of positive cash flow properties in the regional area? and is this the right way to invest successfully?
cheers
from reading the threads, history of investing didnt really change much.....
all mentioned of cash flow properties are either in regional areas or possible in mining towns........
Hi Richard,
Were you in the investment property magazine?
I think i read that you had mass amount of properties? if you dont mind me asking , did you buy alot of positive cash flow properties in the regional area? and is this the right way to invest successfully?
cheers
no PM fees as it is self managed.
