Engage one of our property buyers’ agents if you are looking for a positive geared or positive cashflow property investment opportunity to super-charge your portfolio. Propertybuyer specialises in sourcing intelligent property investments in Sydney, Brisbane, Melbourne and various regional areas around Australia.
As investments, positive cashflow property and positive geared property are very similar, but there are some differences. Our buyers’ agents are well versed in both. Each of our buyers has specialist knowledge of their service areas, which extend across entire cities in Australia and not just the suburbs within.
Not only are they experts in their area, they also have extensive professional networks with contacts in all related aspects of property buying and investing. So, if you want to renovate your positive cashflow or positive geared property in Sydney, for example, your buyers’ agent will provide you with a list of reputable contractors necessary for the job.
POSITIVE CASHFLOW PROPERTY
We source three main types of property to help you choose the positive cashflow property that best suits your investment requirements:
Investing in positive cashflow rental property is an ideal strategy as they are self-sustaining and generate enough income to cover all expenses, so you don’t need to dip into your pocket each week to cover any shortfalls. However, finding the right positive cashflow property to invest in can be a real challenge.
Sydney, Melbourne, and Brisbane are big cities with a lot of real estate. It takes a lot of time to research and identify the right areas with strong drivers for cash positive property. Add to the challenge the fact that you don’t typically see positive cashflow property for sale. Instead, buyers need to create investment opportunities by using the strategies outlined below.
Take the time and stress out of the process; talk to us today for a positive real estate experience.
We are constantly researching the property market to find property hotspots where investors can pick up
The trick with picking the right investment hotspot is to look at the long-term economic drivers of the area. Starting with the macro factors, we examine what is driving housing demand and rents in the area. Using highly relevant statistics, including vacancy rates, days on the market, supply and demand ratios, vendor discounting, rental yield, demographics, population growth, and many others, we evaluate the future prospects of the area.
The next step is to ground-truth the area and identify the property types that are in highest demand for the suburb. With over 15,000 suburbs in Australia, this is a difficult task.
Selecting the right positive cashflow property starts with research. Based on your personal requirements, we help design a strategy for your individual situation. We then conduct extensive market analysis to identify suburbs and properties likely to deliver the best return. We take away the guesswork and use intelligent data to pinpoint high growth and high cashflow investment areas. Every opportunity is evaluated against dozens of factors, including local market conditions, comparable sales and property specifications.
As Australia’s most awarded Buyers’ Advocates, we’ve helped 3000 investors find top performing properties so you can be confident you are in safe hands. We can also connect you with our alliance partners to safeguard your portfolio, including solicitors, building inspectors, property managers, tax accountants, finance brokers, and depreciation specialists.
Some of the areas we target for positive cashflow investors and geared properties are those that produce yields of around 4.5% to 6%, and which have strong capital growth appreciation of approx. 5% to 7%pa, giving a total return of between 9.5% and 13%pa.
For example, over the last ten years we have placed many investors into selected suburbs of Western Sydney (before the boom) that were affordable and primed for growth. These investors have now seen capital growth of over $250k on a $500k property and are set to invest again.
We operate in selected areas of Brisbane, Newcastle, Hunter Valley and the Central Coast, where the same fundamentals are present for solid capital growth AND positive cashflow.
We have access to off-market opportunities in all the suburbs in Sydney, Brisbane, Melbourne, and other areas in Australia. These off-market opportunities are available from as low as just $300k and rent from $340pw.
Dual living homes are cleverly designed to look like a single dwelling from the streetscape but have two separate properties under the one roof. One side is typically three or four bedrooms and the other side two bedrooms. These properties are only permissible in certain council areas, provided the land exceeds a pre-determined minimum size.
They are showing gross yields from 5.0% to 6% pa. Priced from around $500k to $750k+, they include brick and tile construction, fully fenced, turf and landscaping and covered outdoor alfresco area. They are popular with tenants as the price point is lower than other rental properties, and they are brand new.
Rather than just settling for a single income property investment, you can easily generate two incomes from dual living houses and duplexes. Some of the other advantages that these dual income properties offer include:
The best news, however, is we can also provide rebates directly to you. As exclusive buyers’ agents, we don’t accept sales commission, so rebate this to you. Here’s an example of how this works:
Typical package price: $550,000
Our sourcing fee: $9,900
Rebate of sales comm: $15,000
You save at least: $5,100
The floor plan of a typical dual living property above.
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Granny flats provide a second income for your investment property at a very affordable price. From around $90,000 for a one-bedroom flat you can generate rental returns from $230pw. From around $115,000 to $140,000 for a two-bedroom flat, rental yields start from $280 up to $500pw.
When you combine the rental return on the existing house, we typically see an overall yield of 5% to 6% + pa on the investment. This creates a positive cashflow property and puts money in your pocket each week!
Our granny flat specialists operate in a wide range of property markets in Australia. We work exclusively for buyers, helping you source properties that match our 20-point checklist. We can help you source properties for sale where a granny flat will fit easily, negotiate the best price and then manage the entire construction process. With our industry contacts we have negotiated volume discounts with builders and suppliers to bring you the lowest possible price. Our fully transparent fee structure pays for itself many times over. Contact us today to create a positive cashflow property that grows your portfolio.
Before jumping in and buying any positive cashflow property with the potential for a granny flat, you need to know about the relevant regulations, setbacks, block alignments, easements, covenants and which builder to trust. Propertybuyer takes care of all the details with a capped project management fee that includes many extras
Our service includes:
Find out more about our granny flat process.
Positive geared property is an investment property where the total rent received exceeds all the ongoing expenses, including bank interest on the outstanding loan, repairs and maintenance, management fees, council rates, strata fees, insurance, and other taxes.
Positive gearing is essentially borrowing money from a lender (gearing/ leveraging) in a safe manner such that your total borrowing and other costs are more than covered by all the holding expenses of the asset, delivering you a surplus cashflow each month.
Positive geared property is the ideal situation for investors as they receive positive cashflow into their bank account each month.
Positive geared property can be found in both regional and metropolitan areas. The trick to finding the ideal positive geared property is to ensure the rental return and the capital value is sustainable and stable over the long term.
You can find positive geared property investment opportunities across the real estate spectrum, including standalone houses, duplexes, houses with granny flats, apartment blocks, and even in commercial property. This means you can take advantage of residential and commercial investment opportunities, especially in high-demand areas. Sydney is one of the best cities for both types of investment with its strong residential and commercial property markets.
Positive geared property investments should be located in areas with low vacancy rates, and there should be strong demand drivers by owner occupiers in the local area.
In addition to positive geared property, there is also negative geared property. The debate over which of these is the ideal investment strategy has raged for decades. The answer depends on your individual situation.
Positive geared property puts extra money in your pocket each month – and it’s hard to go broke collecting cash every month! However, you also need to consider the capital growth potential of your proposed investment property.
Negatively geared property means that the rent you receive does not cover all the interest and holding expenses and you need extra money to hold the investment and cover the shortfall each month. This is not necessarily a bad thing if you are in a high-income bracket and are paying a lot of tax, as negative gearing could provide a sensible way to use your tax effectively to offset losses related to your investment property. However, in order to break even, the capital growth rate of the property must far exceed the cashflow loss you are making on the investment.
Your choice of location and property type is critical to being a successful investor. You need the right strategy if you want to optimise your negative or positive geared property investment and this is best achieved with the help of a professional buyers’ agent with loads of experience in this type of market, as well as loads of experience in their local real estate market.
Positive gearing is a good strategy for some property investors. A positive geared property investment is where the rent you receive more than covers all the holding expenses, as mentioned above. Positive gearing increases cash flow in your account each month.
However, for some high-income investors who are chasing higher capital growth, a positive geared property that gives an extra $50 per week in cash flow may not be the right option.
A knowledgeable and experienced buyers’ agent works with you to find the option that is right for you, be it a negative or positive geared property.
The strategy you decide upon depends primarily on your individual circumstances and goals. With these always top-of-mind, your agent will carry out the proper research and reach out to other experts in their professional network to find investment properties that meet your criteria.
Secure your financial future now with a positive investment. Call us today on 1300 655 615 to speak with our positive cashflow and positive geared property expert Stewart Fraser or Click here to send us your enquiry.
To help you on your property buying journey, we’ve put together a useful report on Powerful Positive Cashflow Strategies That Work to help guide your decision making. To access your free report just fill in your details further down the page.
* Disclaimer: The actual returns achieved by your positively geared property will depend on your personal financial situation, interest rates, deposit, loan amount and investment property selected.
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