Who has bought a GENUINE cashflow+ IP in the past 12 months under $300,000?
- Thread starter beachy
- Start date
Not a good example sorry I'm from tassie originally were property is from people are poor they won't want to pay the. 300 and you get houses 3 beds for that or less in burnie
I assumed the 300 was in total for the two units. 150 seems reasonable for a 2 bedroom flat.
Yeah but wouldn't be positive that's what it's about
165 thousand unit in tassie won't rent out for 300 150 more like 200
Looks like I was just a bit too optimistic.
Purchase price: $253000
Income: $410*52= $21320 vs
Expenses
Interest rate: 5.24%
Loan amount: Have to assume full amount plus costs to make it cash flow positive, so $266000. So $13940
Rates: $4000, they have jumped heaps
Insurance: $900
Landlord insurance: As above
Prop Management fees: $1600
CASHFLOW+ : $880 before maintenance
Looks like this will be marginally positive at best.
Still, I'm glad I bought it.
Plenty of cashflow+ properties under $300k. Question is where do you find the $2m+ ones? I've bought plenty or seen plenty bought.
The cashflow positive 2m+ properties must surely be commercial. Rarely or never residential.
You could get multiples. Like a block of units.
But single residential operate on a different market at that price range. There's a limited number of people who could afford them. Typically yields are lower. I've been told that at that level the cycle is out of skew with ordinary resi. If the stock market shoots up then big stock investors can suddenly afford better places.
If I had that sort of money I'd be going for several properties in the $500k - $1m range. I'm more familiar with that sort of property, and yields are better. But that's just me.
On this, I think the question that needs to be answered here is not how to find these deals, but how to make them. I'd be very interested to read that.
Subdivide, MCU / multiple dwellings, Granny flats, dual occupation, single room lets, short stay accom, exec leasing.......
Use your imagination!
The only way to find them is spend hours a week looking all over australia. Most people just want everything presented to them. Those who put in the hours find the good deals
How to make them? Add a room to internal structure, subdivide and sell half the block, maybe rennovations if it's a real dump
No, thats is myth IMO.
A mate gets these and his secret is : research, research and research. e looks for gems that has sat for whiles, ones under rented or with lower than usual CB fees. He then low balls a number on a fair but hard prices and has a real reason why, comparative sales, work etc.. Of 10 he may get 1 nibble. Sometimes the sellers just want out.
The bargain listing under the market is few and far between and often inside agent deals in my experience.
To do the above you need pre-approved cash and confidence to go hard. Subject to finance clauses get you nil real interest.
FYI Peter
Your not listening.
I don't want to find a "research", I want a Positively geared property.
Definitely possible to do residential and no particular shortage of it. Then again, not as if you'll buy a lot of them so you only need to come across a few. But probably not say a $2m standalone house.
Your not listening.
I don't want to find a "research", I want a Positively geared property.
Which requires research.
Know the area, know the rents, know the values and do the numbers. Our recent purchase will be positively geared. 1 because IR are low, 2 because we purchased below market value, 3. Because we are doing a small reno which will 4. Give us max rent for that area - which will ensure it will still be +ve when interest rates rise.
