Wow, sounds perfect, but buyer beware. It is true that cash flow positive property does exist out there. So let’s take a closer look.

 

We have property available right now.  For example, $320,000 buys a property that should yield about $350p.w. If you are able to secure a 90% LVR loan (loan to value ratio), then after tax, it is cash flow neutral initially and then cash flow positive from year 2 onwards.

 

As we said, buyer beware! What we mean by this is that there are offers in the marketplace of cash flow positive property that claims ‘unreal’ rental yields of 8% or more (we’ve heard of 15%). If it sounds too good to be true – it probably is not true.  If the yields are ‘super-normal’ then simple economic logic suggests that the capital growth is probably ‘sub-standard’. Total growth (yield plus capital appreciation) has limits.

 

We urge you to ensure that your cash flow positive investment will obtain capital growth. After all, that is what will create your wealth and leverage to build your portfolio, in the long run. This is what Investment Property Partner look for in our investments. We don’t ignore cash flow in the research, but cash flow without capital growth is not acceptable to us.

 

If the idea of owning your own cash flow positive investment property appeals to you, then please ‘click here’ and we will show you how cash flow and capital growth can be achieved simultaneously.