I was able to find a property which at the moment would yield at around 6%. It is a larger 2 storey house with 4 bedrooms and 2 bathrooms upstairs and double garages downstairs on a full sized section in North Shore. The house is built on a sloped section so the upstairs is in level with the road and has its own access and a downhill driveway to the double garage downstairs.
Now here is the thing, I can turn downstairs into a 2 bedroom unit which will increase the yield to roughly 8 or 9%. Still lot of you will know that this would not produce positive cashflow. So another thing which can be done to increase the value and to increase the yield of the investment would be to subdivide and build another property on the back. Unfortunately at present it does not meet the council's criteria. But there are solutions to any challenges, the neighbour would sell a strip of his section which will then make the section large enough to subdivide. At the moment I am working to put an option on that strip of land.
It sounds like a lot of work, but this kind of work is required to turn an average investment into a cash flow positive property.
I was reading one of the threads on PT, that had a quote from Ron Hoy Fong, it said "you don't find cash flow positive properties, you make them." And if we have this in our minds at all times, we will find ways to turn average investment to a great investment and that is a beauty of the property investment.
And also thanks to Steve Goodey for sharing some of his properties, that he had turned from averages to greats, at one of his talks which I was fortunate attend. Since then it has helped me in many ways to spot the "potentials" in a property, which I would have not noticed in the past.
Now here is the thing, I can turn downstairs into a 2 bedroom unit which will increase the yield to roughly 8 or 9%. Still lot of you will know that this would not produce positive cashflow. So another thing which can be done to increase the value and to increase the yield of the investment would be to subdivide and build another property on the back. Unfortunately at present it does not meet the council's criteria. But there are solutions to any challenges, the neighbour would sell a strip of his section which will then make the section large enough to subdivide. At the moment I am working to put an option on that strip of land.
It sounds like a lot of work, but this kind of work is required to turn an average investment into a cash flow positive property.
I was reading one of the threads on PT, that had a quote from Ron Hoy Fong, it said "you don't find cash flow positive properties, you make them." And if we have this in our minds at all times, we will find ways to turn average investment to a great investment and that is a beauty of the property investment.
And also thanks to Steve Goodey for sharing some of his properties, that he had turned from averages to greats, at one of his talks which I was fortunate attend. Since then it has helped me in many ways to spot the "potentials" in a property, which I would have not noticed in the past.
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