The Return of Cash-flow
Posted by: Rob on 
Jan 8th, 2009 | 
Filed under: Australian property market
With interest rates falling to the lowest levels that many of us have ever seen, we are now presented with the opportunity to buy well located capital growth investment properties that will cost you next to nothing to hold. Some will even put weekly cash-flow in your pocket from day one.
To find cash-flow positive investment properties in last six years, you would have to go a fair way inland to areas of low population, no jobs and little infrastructure. Not the best mix of attributes to base a secure property portfolio on. But in recent month the tables have started to turn. Lack of supply in sort after areas with great fundamentals, such as schools, employment and transport has increased rents significantly.
I have just fixed a few of my property loans with one of the big four banks at 4.99% for 3 years, and in coming months we may see other lenders offering similar rates or even lower. I am finding properties on the market now in areas with great fundamentals between Brisbane and the Gold Coast for sale that achieve 6%+ rental yields. With figures like these the rent achieved could cover the mortgage, rates, and outgoings, leaving you with a property that takes care of itself.
Throw in the mix some creative strategies, like a quick cosmetic renovation to boost the rent and property value even more and then just count the dollars coming in week after week. Ah, isn’t residual income sweet.
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