Are you a positive cash flow investor?

kaz101

kaz101

New Member
When reading another post I saw someone mention the tax benefits of property investing and I was reminded that when we first visited here (back in 2001 before we moved over permanently) negative gearing was very common.

Talking to agents back then about cash flow positive investments didn't get us very far. More agents seemed to be interested in selling investments that would give you negative gearing (and so tax advantages) if you were earning the big bucks.

So I was wondering, are you cash flow positive investor, negative gearing investor or something else?

We try to be cash flow positive or at least neutral since cash flow is important to us. Being asset rich but cash flow poor is not a good way to be (been there done that etc...).

Cheers,
Karen
 
D

Damian George

New Member
Properties in oz are generally cash flow negative which is fine in a raising Market but as I am finding out a drain on resources in a falling one. My property in the uk is falling in value but at least it isn't eating my savings ( or lack of).

Sadly my property in queens land is just a money pit. And one
 
kaz101

kaz101

New Member
Hi Damian,

At least the interest rates in the UK are low right now. We were on fixed rate mortgages when we moved out here from the UK since we found that simpler for budgeting purposes. Now they have all come off those and we are making some serious cash flow on them.

You've probably already checked property prices in the UK but we've found that prices in the areas that we bought are recovering. Some of them are above what we originally paid but we bought several years ago now.

As you say I've found that cash flow negative properties are a drain so a balance in a property portfolio is probably a good idea. It's also a pain if a cash flow negative property is vacant whereas with cash flow positive properties you can put money away for a rainy day.

Cheers,
Karen
 
CSQTownPlanner

CSQTownPlanner

New Member
positive cash flow investment property tips

An item on the cash flow statement that reports the aggregate change in a company's cash position resulting from any gains (or losses) from investments in the financial markets and operating subsidiaries, and changes resulting from amounts spent on investments in capital assets such as plant and equipment. Tips that will help you successfully purchase your first positive cash flow investment property.

• take your time

• If you fail to do the figures accurately then the property you bought that you thought was positively cash flowed might actually cost you money each week.

• do not get emotional

• get ready to investment
An Investment Plan – You should have a plan of how you want to invest and what you want to invest in, that way you can weigh your potential property against your plan to see if it fits in.
A Deposit – It would be great to purchase the property without a deposit, but that isn’t really an option in this economy. You will need to save your deposit (usually at least 5%) before you will be able to invest.
Loan Pre Approval – Get your loan pre approved by your chosen lender so that all you need is a valuation on the property. This will make finances a lot easier.
Due Dilligence Kitty – Have a due diligence kitty saved so that you can afford to pay for the building and pest inspection, and any other inspections you may need.
A Conveyencor/Solicitor – Not as important as the above, but it helps to have a Conveyencor or solicitor chosen, so when you make an offer you can get the contract drafted as soon as possible.
 
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