Buying for cash flow

Discussion in 'What to buy' started by Mangoman, 28th Nov, 2019.

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  1. MTR

    MTR Well-Known Member

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    I am sure there are a few members who have used similar strategy

    I just stumbled on this, have no idea whether this is a good investment or a lemon
    I am personally not tempted, not a fan of small regionals
     
    MTR, 17th Mar, 2021
    #41
    Niche likes this.
  2. Niche

    Niche Well-Known Member

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    What "smarter" alternatives are there then for boosting cashflow and/or future borrowing capacity?
     
    Niche, 17th Mar, 2021
    #42
  3. The Y-man

    The Y-man Moderator Staff Member

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    @geoffw had a block of flats once.

    The Y-man
     
    The Y-man, 17th Mar, 2021
    #43
  4. The Y-man

    The Y-man Moderator Staff Member

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    We've hit our serviceability (and then some), so have gone the route of comm prop trusts and AREITs. That way the loans are done through the trust and not in our own names.

    The Y-man
     
    The Y-man, 17th Mar, 2021
    #44
  5. kmrr

    kmrr Well-Known Member

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    Why does everyone always think they need to go regional to get a better cash flow? It's like noone has heard of commercial property!
     
    kmrr, 3rd Apr, 2021
    #45
  6. skater

    skater Well-Known Member

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    We've had a couple of them. Still got one.
     
    skater, 3rd Apr, 2021
    #46
  7. skater

    skater Well-Known Member

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    To the OP, if your heart is set on property and you are deciding on either Broken Hill or Mildura, well they are completely different in almost everything. If it were me, and my mind was set on either of those two towns, AND I lived in Mildura, then it's a no-brainer.

    Buy close to home, you can get to know the market much better than buying elsewhere. If you are handy, you can paint & do minor maintenance to save money.
     
    skater, 3rd Apr, 2021
    #47
  8. arewethereyet

    arewethereyet Well-Known Member

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    Have you considered annuities?
     
    arewethereyet, 19th Apr, 2021
    #48
  9. jaybean

    jaybean Well-Known Member

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    That's interesting, so it allows you to keep going even when you've hit your limit... I might look into this when I've saved up a bit more cash.
     
    jaybean, 19th Apr, 2021
    #49
  10. The Y-man

    The Y-man Moderator Staff Member

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    Good thing is unlisted ones you can get in for about $20k+, listed ones for about $550 :)

    The Y-man
     
    The Y-man, 19th Apr, 2021
    #50
  11. jaybean

    jaybean Well-Known Member

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    And what type of loans can you get against these?
     
    jaybean, 19th Apr, 2021
    #51
  12. Wilko

    Wilko Well-Known Member

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    I was looking at Coonamble for a low purchase price with high yield only it was 10% yield on paper. Until I did some research and found that houses were sitting vacant for 6 months between tenants so brought it back to 5%. You can get 5% in Brisbane.
     
    Wilko, 19th Apr, 2021
    #52
  13. The Y-man

    The Y-man Moderator Staff Member

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    They are internal - you don't do anything. The managing company gets the loans.

    So you'll see a reit like SCG is actually geared quite high with $14.7bn loands against $31.2bn property


    The Y-man
     
    The Y-man, 19th Apr, 2021
    #53
  14. Ruby Tuesday

    Ruby Tuesday Well-Known Member

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    It is not just distance it is also travel time, there is one road on a busy main highway very strictly policed, that is very difficult to enter also a congested bridge, which terminates on another busy road which is very difficult to exit . It is very easy to get good yields close to the CBD. Could buy this for cash , have 50k left for for ETF or REIT and borrow anther 50k and do the same, found it in seconds. 147 Lemon Avenue, Mildura, VIC 3500 - House for Sale - Ray White Mildura. or could have bought this with 200k borrowing and pouring cash in at 2k a month. 1&2/905 Fourteenth Street, MILDURA VIC 3500 | Real Estate Burns & Co Mildura (burnsandco.com.au)
     
    Ruby Tuesday, 20th Apr, 2021
    #54
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