What is a positive cash flow property? Simply put, it is a property which earns income higher than what it costs you to own and maintain it. You need to carefully calculate how much income you are going to receive through rent and estimate the expenses that you are likely to incur e.g. interest repayment, council and water rates, insurance and so forth. As a first time investor, it does not put any strain on your regular income; it, in fact, generates a new income stream. Any surplus that you achieve can be reinvested or used to meet an objective. If you research well before investing, you can get properties that are not only generate positive cash flow but also appreciate in value quickly.
So how can Silverhall help? We have been in the industry since 1999 and understand what drives capital growth of a property. Using our proprietary research, we find properties that are:
1. Affordable: Again, you may ask what does this mean. Affordability is our big mantra, a property must meet the capacity of an investor, and this will make it affordable. You would have to agree a 4 bedroom home on a good size block of land for $400,000 and less than 30 minutes from the CBD is affordable. The positive cash-flow property also means you would not have to break the bank or strain your weekly income it. Factors like having a dual income property (we will have a separate blog entry for this) means you have to pay for one property. However you get two incomes out of it. An example would be a dual key property or a property with a granny flat. Single mortgage, two rents. All this goes a long way in improving the income you get from the property.
2. Great locations: Some people will have you believe that you would have to sacrifice equity growth for positive cash flow. If you research carefully, (like we do), you can have both. Employment driven population growth and Government investment driven infrastructure projects are the key. A property that is within walkable distance of a new planned town centre, for which the council has already spent millions of dollars to get the water and sewage system in place is the ideal location to have an investment property. On completion, the Town Centre will generate employment. The property’s equity increases quickly as a property close to the town centre, making it more desirable. It will be tenanted faster as people want to live closer to the place of employment and the amenities of the Town Centre.
Where can I find a property that is both positively geared and has potential to have strong equity growth you ask? Silverhall has done all the research for you. The best part is we do not even charge you for the research; all you need to do is, talk to us. You do not even need to come to our office; we come to meet you. The meeting can be at a time suitable to you, during or after working hours, weekday or on weekends. We also do not believe in dropping a client mid way, hand you over to a solicitor or a builder. Standing by our clients and assisting them through the entire process is what we do. We help with contracts, look after the administrative work during the build and assist you in the post build inspections to ensure the property you get, in the end, meets your expectations and then some more.
You know what, our relationship may not end there. We have recently launched Silverhall Property Management. Silverhall Property Management or Silverhall PM. For now, it is present in specific geographic regions. We look after the daily rigours of being a landlord, so you do not have to. The people who help you research and build the property, are the ones taking care of it, and we take care of it as if it were our own. Want to know more, call us on 1300 66 77 24, or email This email address is being protected from spambots. You need JavaScript enabled to view it. to set up an obligation free meeting. We will assess your situation and recommend the best investment for you.