How to Create Positive Cashflow Properties

Picture of --- Bei Yilong

--- Bei Yilong

Positive Cash Flow means property that is Positively Geared in terms of investments allowing all costs such as expenses and mortgages etc. being taken care from through any rent received and that there is still money left after covering such costs.

If you are trying to find a positive cashflow property one word of advice is to not to get emotionally attached, eliminate this, along with the properties location. Information seeking and obtaining statistics in the specific areas where the property is located can easily determine whether the property will end up being Positively Geared rather than Negatively Geared.

PSCA when assessing a property before offering a Development and Investment opportunity to our clients always ensure that the properties are located in areas of good growth unless otherwise requested for personal needs.

Many investors come to us, for specific properties with a small outlay seeking potential high rentals, reflecting a Positive Geared property. The Geelong and its surrounding areas is one area that we have focused on and have been offering our clients. This is approx. 30% – 40% of our investors to which many have been constructed, many more under construction and others awaiting permits to be approved.

Geelong being a regional house market just an hour’s drive from Melbourne, whist not making strong headlines or the focus for many, Geelong along with its surrounding area has performed steadily and strongly in the face of the local manufacturing downturn featured in recent news. The Geelong area is rapidly becoming home to young cashed-up professionals (singles, couples and families alike) and many of these buyers are making the sea-change from Melbourne and commuting via train back to the CBD. It is this evolution of Geelong which is giving it a place of serious recognition by investors in 2015, and to date has recorded a growth of 21.5% this year.

Properties that are run down can often be bought at a large discount (in comparison to the rest of the market) because most buyers don’t want dilapidated houses. They want a house they can live in right away. This offers you an opportunity if you are willing to get your hands a bit dirty and do some renovating and development.

The benefits of real estate with a positive cashflow are clear in terms of your investment strategy. The house essentially pays for itself – with money left over. These types of real estate opportunities increase your serviceability, making you more attractive to banks and lenders. In short, if you can find the right investment property and increase your income, you are able to borrow more.

Contact us as many have done so to further assist you and your future plans, and start building something now – we have some products which you can enter into immediately for as low as $360,000.