Positive Cashflow PropertiesWondering how to find the right investment property? The experienced team here at Positive Real Estate can help you make the right choice.
As an investor, restricted cashflow can leave you stuck. It prevents you from moving forward, therefore making it hard to expand your portfolio further. One of the main reasons people choose to invest is so that they have more cashflow in general; a positive cashflow property places money directly into the investor’s pocket before tax.
Positive geared investments mean that all costs (expenses and mortgage repayments etc.) are covered by any rent, and there’s still money left to spare. As with all real estate, it pays to be careful – some agents advertise that a property is “Positive Cashflow”, when in reality it is negatively geared and only becomes the former after tax deductions have been made. If you are trying to find a positive cashflow property for sale on the market, it’s best to seek help from a reputable advisory company – such as Positive Real Estate.
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.
If you want to balance your portfolio, the extra income from these types of real estate opportunities can be used to cover any shortfall you may experience due to the costs of holding high capital growth properties.
It is possible to turn a property with negative cashflow into a positive property. There are a number of solutions – you could choose a loan product with a split facility, or recycling equity could solve the issue. If you would like to learn how to find investment properties, or how to turn a negative geared investment opportunity around, our information evenings are a great place to start.
To learn the other strategies and techniques come to our next complimentary Property Investor Night and find out:
- How to find and create profitable deals,
- How to know which markets to invest in,
- How to keep investing through interest rate rises,
- How to minimise your risk as an investor,
- How the property cycle works and how you can make the most of each stage
- What is positive cashflow and where to find these elusive properties
- How to use your equity to invest and not endanger your home
- And so much more
All states have our hand-picked Investment Coaches who are incredible investors and know the markets inside out.