QLD Cashflow Positive IP in QLD or regional NSW?

Discussion in 'Where to Buy' started by [d4rk-fr3d], 20th Jan, 2020.

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Which area or state can be CF+ this year?

  1. NSW Regional

  2. QLD

  3. No such thing, better wait until recession first.

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  1. [d4rk-fr3d]

    [d4rk-fr3d] Well-Known Member

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    Hi All,

    I'd like to know, if it is possible nowadays to get Cashflow+ investment property?

    My budget is approximately $300-325k maximum and looking for anything that is neutral or even better Positive Cashflow if there is such IP nowadays.

    Locationwise, I've been getting some feedback from my friends to look in QLD around Ipswich LGA or NSW regional.

    Any suggestion is welcome.

    Thank you in advance.
     
  2. gach2

    gach2 Well-Known Member

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    Watchout with QLD - while yield can be high their holding costs (council/water rates) are generally higher than NSW.

    With NSW I was wondering how the current bushfires impacted regional towns (whether affected or not).
     
    [d4rk-fr3d] likes this.
  3. Beano

    Beano Well-Known Member

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    How much principal are you including in your cashflow ?
    Do you allow for taxation in your cashflow?
    How much salary do you take out for your time ? (If you do not get the property managed )
     
    [d4rk-fr3d] and My House QLD like this.
  4. My House QLD

    My House QLD Well-Known Member Business Member

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    If you buy well Logan has some great cashflow. In my opinion the location is better than Ipswich.

    $300-325k will buy you a good property in Logan.
     
    Last edited: 21st Jan, 2020
    [d4rk-fr3d] likes this.
  5. Archaon

    Archaon Well-Known Member

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    Perhaps give Cessnock/Muswellbrook a look.

    What cash flow positive are you looking at, where gross rent is higher than monthly repayments, or looking for net positive at the end of the financial year?
     
    [d4rk-fr3d] likes this.
  6. Trainee

    Trainee Well-Known Member

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    What cg would you expect from your cf positive property?
     
    [d4rk-fr3d] likes this.
  7. willair

    willair Well-Known Member Premium Member

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    Last edited: 21st Jan, 2020
    [d4rk-fr3d] likes this.
  8. [d4rk-fr3d]

    [d4rk-fr3d] Well-Known Member

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    I expect a Cashflow positive to assist me with the monthly income to build deposit for my PPoR in NSW.

    Because at the moment I have heard from my friends that property is on its way up (Recovery period), hence before it is too late, I'd like to build up some capital I can use.
     
  9. Trainee

    Trainee Well-Known Member

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    How much income are you expecting to get? P&I is maybe 5%. Costs of property 1.5%. Even at a 8% yield you MIGHT clear 5k a year. Remember youll need to put a deposit down (50k at least?) which you wont get back until you sell the property, and selling has costs. Seems unlikely that a marginally cashflow positive property (on IO or P&I?) that ties up 50k of your capital will help much with a deposit.
     
    The Prestige, Beano and [d4rk-fr3d] like this.
  10. [d4rk-fr3d]

    [d4rk-fr3d] Well-Known Member

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    NSW water will become more expensive anyway in the near future due to the Saltwater processing facility.
     
  11. My House QLD

    My House QLD Well-Known Member Business Member

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    I've seen them both, here are the details you need to know:

    Kingston is a COMPLETE renovator, it needs a LOT of work.

    Marsden has extensive termite damage they have been right through the house including the roof space, that one you are only buying the land.
     
    Empire, BarneyRubble, craigc and 6 others like this.
  12. TMNT

    TMNT Well-Known Member

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    whats the real land value on the marsden one?
     
  13. willair

    willair Well-Known Member Premium Member

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    Thanks ,if you had to start some-where and you had basic trade skills or learn them then nothing wrong with Kingston for that price ..imho..
     
  14. fols

    fols Well-Known Member

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    I think you're dreaming with this approach (sorry if that sounds a bit harsh)- I truly think you would get a better monthly income outcome getting a second job (eg driving Uber's or night-filling at Woolworths).
     
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  15. Lindsay_W

    Lindsay_W Well-Known Member

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    Sounds like you want cashflow AND capital gains :)
    how much cash have you saved for a deposit on the IP?
    How long until you want to buy the PPOR?
     
  16. My House QLD

    My House QLD Well-Known Member Business Member

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    From RPData: 30/06/2019 $210,000
    Corner block 792m2 I'd say the land alone is worth 240ish at least. House removal costs are another issue as commercial tipping rates when through the roof in QLD recently.
     
  17. euro73

    euro73 Well-Known Member Business Member

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    David_SYD likes this.
  18. Milo16

    Milo16 Member

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    Why do you thing Logan is better than Ipswich? I’ve been looking at both,but I’m leaning towards Ipswich ATM.
     
  19. My House QLD

    My House QLD Well-Known Member Business Member

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    Closer to Gold Coast, closer to Redlands, better road into Brisbane. You have the train line from Brisbane to the Gold Coast running right through Logan. Far too much land available at Ipswich there is not much land left to develop in Central Logan. Pretty much anywhere North or South or East of Central Logan (Woodridge, Kingston, Logan Central, Slacks Creek down to Beenleigh and Eagleby) houses are more expensive.
     
    Last edited: 26th Jan, 2020
  20. Luca

    Luca Well-Known Member

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    Ipswich is a big area like Logan. It depends where & what you buy. I would suggest go & have a look at the two areas. Ipswich has suburbs that have performed very well to date e.g. Newtown.