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For the positive cash flow buffs

Discussion in 'General Property Chat' started by Leo2413, 2nd Sep, 2015.

  1. Leo2413

    Leo2413 Well-Known Member Premium Member

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  2. HUGH72

    HUGH72 Well-Known Member

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    Thanks Leo, Sometimes I think talking about cashflow is a dirty word on here :rolleyes:
     
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  3. Taku Ekanayake

    Taku Ekanayake Well-Known Member

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  4. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Hi @HUGH72 ,

    I know what you mean mate. Look, personally I think cash flow is important with regards to its role in supporting the investor to hold the property while waiting for the eventual CG of an investment. That's what's going to build the wealth and make the difference, the growth. I think most of the investors here are savvy and understand this but outside of here its amazing how many people on great incomes will look for cash flow positive properties at the expense of everything else. in all sorts of areas and markets just so they can say " I got a cashflow positive property", without really understanding what it means and how it will affect them building their portfolio. I'm not anti cash flow at all. I just prefer to use it in a way that aids my wealth acceleration and not hinders it.
     
  5. Andrew H

    Andrew H Well-Known Member

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    I agree 100%
     
  6. Biz

    Biz Well-Known Member

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    Hang around more. Where we are now reminds me of Somersoft in the early-mid 2000's. Back then it was was all capital growth or GTFO, cashflow is for sheila's!!! A few years later people were more concentrating on cashflow as rates went up and prices went side ways for what seemed like an eternity. The tone and conversations around cashflow importance shifted.
     
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  7. euro73

    euro73 Well-Known Member Business Member

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    APRA's recent little disruption of the credit free for all will drive a rethink towards cash flow ... One APRA will interestingly enough result in another APRA ie Accelerated Principal Reduction Approach :)
     
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  8. 2FAST4U

    2FAST4U Well-Known Member

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    Really?

    I don't work in the real estate industry but most people I know just buy property based on location and don't care how much it costs for them to hold it. E.g. one of my mates bought a property recently for 685k and he'll be renting it out for $450. I asked him why he purchased that house in that area and he just said he likes the area.
     
  9. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Recently quite a few people I have spoken too are all asking me where to buy positive cash flow property.. some end up quoting its been recommend by this article or this book etc... I hear that a lot these days...and I know they are on good incomes etc.. I do also get some people who come to me saying they want to buy NG properties because they were told its a great way to reduce their tax....:mad::eek: don't know whether to laugh or cry..
     
  10. 2FAST4U

    2FAST4U Well-Known Member

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    Pretty hard to find anything cash flow positive in Sydney atm. I've never really understood the negative gear to reduce tax idea as well. It should be about investing not on how to minimise the most tax otherwise you may as well just donate it to charity:)
     
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  11. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Yep I agree with you. I think any tax benefits is just a small bonus, but should never be the primary objective imo.
     
  12. Azazel

    Azazel Well-Known Member

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    Thanks for the link Leo, I'll take a look.
    By the way, I'm a big fan of CF+ too.
     
  13. Fargo

    Fargo Well-Known Member

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    Negative gearing can give positive cash flow, it is done so you don't have to donate to the government, or so you do have some extra funds for investing or to donate to charity if you wish. I don't understand why any-body would pay more than 30% tax and have the compounding opportunity costs forever. Getting tax back for depreciation on a property that is going up in value seems like a smart thing to do for me. Having Negative cash flow properties may be a different story.
     
  14. Leo2413

    Leo2413 Well-Known Member Premium Member

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    np. I'm really only a fan of it to the extent it lets me hold on for growth, I'm not really interested in $10 a week here and $20 there...
     
  15. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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    Depending on which month's magazine a brand new investor has pulled off the rack they will ring up wanting one or the other. It takes time to clarify goals, and when someone actually knows what they want over a realistic timeframe the property types to purchase get clearer. Sometimes it is a bit of both. I tend to view cash flow as a portfolio wide issue.
     
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  16. Leo2413

    Leo2413 Well-Known Member Premium Member

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    btw I just had a double take when I looked at the name of your website.....precium.....:D
     
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  17. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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    :rolleyes:some people... its latin. its pronounced pre-see-um. I did wonder if that would be a problem in the beginning.
     
  18. Leo2413

    Leo2413 Well-Known Member Premium Member

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    yeah some people..tell me about it :rolleyes::D what does it mean?
     
  19. Lenny

    Lenny Well-Known Member

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    Great little resource there Leo. Thanks heaps.
     
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  20. BuyersAgent

    BuyersAgent Well-Known Member Business Member

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    Latin. N. (прециум)
    Value | Redemption | Reward
     
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