Do the positive cash flow properties still exist?

Anyone interested in investing in property has heard of cash flow positive properties and how they can supplement your income to give you financial freedom! There are countless books on the subject with stories of how ordinary Australians have accelerated their wealth creation by purchasing property that returns a profit after financing and maintenance costs. However, the big question is, do they still exist in today’s market? Cash-flow-positive properties were plentiful before and during the boom of the early 2000s, but can you still find them now?

Although much harder to find, cash flow positive properties definitely still exist! They won’t always be as straightforward as previous years and may need to be created, rather than purchased. For example, you can increase the rental yield of a property by doing some minor renovations or generating dual income from a property (renting a grandma separately), etc. These are ways you could increase the total rent you receive from the property, thereby increasing your rental yield. Given the state of the global economy and the fact that banks have cut interest rates to record lows, financing costs are much lower than we have seen in a long time. This, coupled with strong demand in the rental market, is excellent news for investors looking for cash flow positive properties.

For investors with less time or experience on their hands, there are still properties that are cash flow positive when you buy them! This means that they are already rented or ready to be rented and will give you a positive return from day one. Given the recent boom earlier this decade, they’re harder to find and usually not in capital cities. There are many highly populated cities that have many unique cash flow positive properties and these areas have strong rental demand! The key is knowing your areas: Focus on areas that you know have good growth prospects and strong rental demand. Find a town or city that has many jobs, schools, hospitals, etc. Most investors are put off by regional and national areas and tend to concentrate on areas in or around capital cities. While some of these can make large investments and have good capital growth potential, they generally have a much lower rental yield due to the fact that they are much more expensive to buy.

So if you’re willing to put in the time to do the research, there are still plenty of opportunities for cash flow positive properties. The Australian property market is full of bargains if you’re looking in the right places. Be sure to get in before the next boom and take the next step towards financial freedom!

Good luck!