Cashflow positive my foot..........

[jane]

Just finished reading 0 to 130 properties in 3.5 years by McKnight........Sweet reading
Please enlighten me where I can find a cashflow positive property in Chch. That's right ChCh not Ballarat, Bluff or Balcultha. Christchurch please.
PM's welcome!!Cheers

[SuperDad]

Count yourself lucky jane.

You may be cashflow positive - mine is heavily negatively geared. Even worse, I can't find decent tenant.

Paul.

[NZGEMS]

You might try adding some value to one Jane to make it posative, in my own opinion that is the best way these days they are not sitting a tree for the picking but they do exist, I have been doing quite a few where I buy a subdividable and add another property to it which will increase your return.

Or just do trading which I also do, count on keeping every 3rd or 5th property, what ever works for you, and sell the others for a profit, there are others out there who will buy do ups or subdividables or high returns, you dont have to do the trades in CHCH but it does mean travelling probably to get them. There is a way around everything if you just take time to think of it.

good luck

[Dean@Massiveaction]

Hi Jane. The reality is that anything written more than about 18 months ago is now a dinosaur. In NZ now you have to learn to trade or find a cashflow business or you will stall. Many educators are recommending small towns for cashflow or simply telling you to fnd pos cashflow, in the main they are dreaming. We have to become more sophisticated as investors these days

[Fritz]

Just finished reading 0 to 130 properties in 3.5 years by McKnight........Sweet reading
Please enlighten me where I can find a cashflow positive property in Chch. That's right ChCh not Ballarat, Bluff or Balcultha. Christchurch please.
PM's welcome!!Cheers

1) Boarding House
2) Convert to multiple dwellings
3) Add relocatables to large lands, saw a Trademe ad for a decent 6K house the other day in CHC, sold in 3 days.
4) Student Accomodation
4b) rent house by the night to business travellers with wireless/plasma/all trappings

to name a few....and then you could

5) trade to make some $$$
6) open a property or project management co. or something similar that other PI's need and make some $$$, something you are passionate about and can add value

THINK !!!

I agree that finding +CF IP on the street like you used to is tougher to find and mostly in non main centers.

Fritz.

[Lynda]

Hi there, Jane,

You're right - cashflow positive is very difficult to find. It is out there, though. At the moment, it seems to be short-term accomodation rented by the room, and has potential issues with regard to management (very time consuming) and 'boarding house' status. So you have to work hard for it.

I like Pooomba's approach - do a bit of trading and subsidise your buy-and-holds that way. That's my strategy moving forward.

I would definitely recommend subscribing to some property finders. Keep an eye on the posts fatbelly makes to this forum. He seems to find amazing deals.

I bought two properties using property finders last year. I have owned them for about 9 months. They had yields of 9% plus on purchase (fantastic!), but had a lot of deferred maintenance. You could put your finger through the window frames on one of them (eek!). I had to have deep pockets!

I've just had them both revalued. I spent $40k each on them to address the urgent issues. They have increased in value by $140k each (oh, yeah!). Rents have increased as well, which means that they are still yielding 9% on what I've paid out. (Thanks Lisa and Trish!!!)

It hasn't been easy - I've worked hard for those gains. It's worth it, though, when the valuation comes through.

My advice is: don't give up. Keep looking for opportunities. Use all of the available assets out there. Good property finders are worth their weight in capital gain.

Go you.
Lynda.

[wildthing]

Maybe new hindquarters are needed.
Steve would love to sell you 0 to 260 properties in 7 years. He does have a freebie mp3 of the cd included in the later book at propertyinvesting.com/book3

[Popoi]

Regarding the trading idea, whats the haps on the proposed changes to linking traders with buy and holders as discussed by IRD?

[Don and Liz]

out of date when it was printed

would have to agree with Dean on this. This book was out of date when it was printed and steve mcknight would admit that.

Many of us on this forum and around the world were buying cashflow positive property well before this was a popular catch phrase and well before steve mcknight ever bought an ip.

Like most things in property the ideas are not new. The skill is in taking things and adapting them into a workable strategy that is sustainable for you and your portfolio. Best of luck.

[GO DO IT]

Hybrid Investments

Hi,

I totally agree with Nz Gems and Poomba, we need to be creative, no point sitting back waiting for 10% yielding properties to fall in our laps.

With correct structures profits can be moved effectively. We are still finding some amazing deals nationwide for both buy and holds and trades. The more we look the more we find.

There are always more solutions than there are problems.

[belgarath]

What do people think about Cashflow positive properties now the market has changed and interest rates have tumbled?
They are definitely out there, but watch for that long term interest rate hike that might catch you out.

[MikeO]

long term rates

What do people think about Cashflow positive properties now the market has changed and interest rates have tumbled?
They are definitely out there, but watch for that long term interest rate hike that might catch you out.

Depends on your situation probabably. I'm about to lock in a 5 year mortgage at 5.9%. That is a pretty long timeframe with certainty about outgoings. Depending on how secure you consider your rental and/or other income to be and also how long you think the property slump will be i'd say things are starting to look fairly viable...

[nzfrazer]

Mike, just curious as to why you are fixing now when in a couple of mths there might be rates of 5% or less on offer....bird in the hand?

[MikeO]

yep bird in the hand

Mike, just curious as to why you are fixing now when in a couple of mths there might be rates of 5% or less on offer....bird in the hand?

Yes that's it. I'm very happy with 5.9% for 5 years. Lower would be great but I think there is some uncertainty around interest rates and I'd be more unhappy if I ended up with a higher rate later on the track that I will be if I miss out on one 'moderately' lower. The OCR quite likely will go lower and that along with pressure from the govt will probably see short term rates drop further but I'm not so sure about long term rates. The exchange rate has taken a bit of a hammering lately and that is inflationary. Also I think the downturn is being overhyped so 12 months from now maybe we will see rates going up again and we may not even see the long term rates fall much below what it is (and 5.9% is a REALLY good rate from a historical point of view).
That's my take anyway. I'll probably be completely wrong...

[nzfrazer]

Is is a great rate compared to what they were 6 mths ago...you might be right to fix now, ...I'm going to stay floating till I can lock in at least 5.5%, or lower...time will tell where rates end up.