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  1. #1
    Join Date
    Aug 2008
    Location
    Brisbane
    Posts
    330

    Default Can anyone find Cashflow + properties.

    I trawl the net looking at Trade Me and www.realestate.co.nz websites, yet i struggle to find + CF properties. Especially down here in Chch. The only places i seem to find them is in Murapara in the BOP and Tokoroa. Which i feel arent suitable areas.

    When i crunch the numbers i always assume an interest rate of 7.5%, how is everyone else finding it, are you guys currently buying or seeing +cashflow property around the country?

    Do i need to be putting in low offers to improve the numbers?

  2. #2

    Default

    When you mean cashflow +, do you mean after interest on a 100% loan? I know some on this forum use that.

    I have a sizable deposit, also looking in Chch for about 8 months now. For me, cash flow + is after interest with a deposit, not 100% loan.

    So far I have not found any property in the areas I'm looking at where the net rental return exceeds 4-5%. Users on this forum said they will not consider anything below 6-8%.
    For me to get even 4-5%, I have had to put in low offers, all of which have been rejected.

    These properties (because of my large deposit and assuming my low offers were accepted) are cash flow -ve in the first year (only a couple of hundred) and positive thereafter.
    This has been my experience so far anyway...
    Last edited by utopian201; 10-02-2010 at 11:56 AM. Reason: more about cash flow

  3. #3
    Join Date
    Aug 2008
    Location
    Brisbane
    Posts
    330

    Default

    Cashflow + on a 100% loan using existing equity.

  4. #4
    Join Date
    Sep 2003
    Location
    High up above and deep down under
    Posts
    10,915

    Default

    Good article in this month's Property Investing Magazine on Kawerau and Tokoroa.
    "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx

  5. #5
    Join Date
    Dec 2007
    Posts
    887

    Default

    Quote Originally Posted by Clark Kent View Post
    I trawl the net looking at Trade Me and www.realestate.co.nz websites, yet i struggle to find + CF properties. Especially down here in Chch. The only places i seem to find them is in Murapara in the BOP and Tokoroa. Which i feel arent suitable areas.

    When i crunch the numbers i always assume an interest rate of 7.5%, how is everyone else finding it, are you guys currently buying or seeing +cashflow property around the country?

    Do i need to be putting in low offers to improve the numbers?
    There are some shoeboxes in the CBD which are yielding 9% net.

  6. #6

    Default

    i'm in chch. I have never see 7,8,9% return. even very hard to find a 6% ones. I started looking from 2 years ago roughly. I'm newbie. I guess trademe or realestate is not a good place if you are looking for a better buy?

  7. #7
    Join Date
    Apr 2005
    Posts
    2,701

    Default

    Quote Originally Posted by Clark Kent View Post
    Cashflow + on a 100% loan using existing equity.
    No you will not find a cflo+100% loan deal these days.

    As a side note, would you be happy to loose your equity should you find a +csflo deal which then went bad?
    Not of my worry, but you know thats the dice you are throwing right?

  8. #8

    Default

    Hi Clark, I'm in the same boat as you. Looking for CF+ with no deposit, just equity (or at most a very small deposit) but also wanting to avoid Tokoroa, Kawerau! I'm finding it challenging and haven't purchased yet, have only made offers on two properties in the last few months. And now it looks like it may be trickier still if building depreciation disappears. I have been advised to make lots of low offers, and also to look for 'twists' where you can squeeze extra value out of a property, such as cheaply creating an extra bedroom. Where are you based and are there particular areas you are looking? There are some property finders here on the forums who might be able to help or point you in the right direction.

  9. #9
    Join Date
    Oct 2005
    Location
    Queenstown, Dunedin
    Posts
    121

    Default

    I find empty negative geared properties that need a tidy up in some way that makes a huge difference and then increase the rent and become cash-flow positive after the first 6 to 18 months.

    Sometimes I only have to tidy the garden and make it low maintenance or paint a room or two, change the curtains purchased cheap from the warehouse. Student properties I upgrade the white-ware and supply nice corner lounge suite, put in a second hand telly all purchased cheap from Trademe.

  10. #10
    Join Date
    Sep 2003
    Location
    High up above and deep down under
    Posts
    10,915

    Default

    also wanting to avoid Tokoroa
    Obviously hasn't read the relevant article in this months Property Investors Magazine.
    "There's one way to find out if a man is honest-ask him. If he says 'yes,' you know he is a crook." Groucho Marx


 

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