Has your cashflow taken a hit

Discussion in 'Where to Buy' started by MTR, 23rd May, 2020.

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  1. MTR

    MTR Material Girl Premium Member

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    Just wondering how investors are going in current environment

    Has your cashflow taken a hit?

    I have reduced a couple of rents, but no Major impact at my end.
     
  2. qak

    qak Well-Known Member

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    Yes, had to reduce rent on one (of two) places for new tenant. Partner has lost job.
    So yes, but not financially stressed, probably just being a bit more careful with outgoings.

    ETA: glad for the investments we have; just thinking we won't have as much to pass on to kids if there's no more employment.
     
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  3. wylie

    wylie Moderator Staff Member

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    We're paying out for our ongoing townhouse build, but regular rental cashflow has not changed (touch wood).

    The rental income we were hoping to get from the townhouses in a few months might be slightly less than hoped for, but so far, as I watch what is available right now, it seems rental prices are not dropping.

    But as they are coming up for rent just after the stimulus packages will finish (?), we just have to wait and see.
     
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  4. Hodor

    Hodor Well-Known Member

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    Had one move out early, got the same rent and old tenant paid the leasing costs as they broke early. Pretty happy all things considered
     
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  5. Silverson

    Silverson Well-Known Member

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    Reduced rents, reduced dividends, reduced income (business)
     
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  6. The Y-man

    The Y-man Moderator Staff Member

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    Just had smallest IP go empty last week. A couple of others impaired. Biggest hit to income is (or will be) dividends and my casual work.

    The Y-man
     
  7. meme plecko

    meme plecko Well-Known Member

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    So far no issues really. One tenant is two weeks behind, but it's not the first time he's late with rent. No requests for reductions from others. With no salary reductions and spending less due to restrictions, it's been a positive impact on cash flow if anything right now. Still, a long road ahead before we return to anything that resembles 'normal', I wouldn't be surprised if we get requests for rent reductions around September, if jobkeeper/seeker get axed/reduced. In the meantime, taking advantage of low rates and switching most loans from IO to P+I for not much more per month. Can I just say, there's no better treatment for mental health issues than having significant buffers in place...
     
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  8. MTR

    MTR Material Girl Premium Member

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    Any government assistance for your business

    Government in US giving out loans, not sure exactly how it works, however they are loans that are forgiven, do not have to pay back as long as no workers are made redundant
     
  9. Casteller

    Casteller Well-Known Member

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    Cash flow 65% down.
    Summer rentals gone, Barcelona rental vacant soon and not allowed to relet yet (movement in the city prohibited), 30% rent reduction on Australian house, dividends cancelled /cut.
     
  10. MTR

    MTR Material Girl Premium Member

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    Sorry to hear this, Massive hit

    When do you think you will be able to rent your Barcelona property out again?
     
  11. Silverson

    Silverson Well-Known Member

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    Yes there is assistance available, i however am not applying for it. It would be hypocritical of me to on one hand say capitalism is the way to go, no one should receive handouts, bailouts etc and then in the same breath have my hand out.
    This is the cost of doing business, I’ve endeavored to build a sustainable business, this means saving for a rainy day.....it’s raining
     
  12. Casteller

    Casteller Well-Known Member

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    I think will be allowed quite soon with Spain slowly reopening, problem now though is the market is flooded with ex tourist flats. Mine is a longer term let but not permanent, a niche market 2-11 months to avoid various tourist and tenant laws. I´m dropping the asking price, rental market is falling, which is good news for many locals.
     
  13. HUGH72

    HUGH72 Well-Known Member

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    Cashflow has temporarily improved strangely enough but haven’t seen my wife or children in nearly 2 months as I’m stuck interstate while Palaszczuk does her best to make a bad situation even worse. :oops:
     
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  14. wylie

    wylie Moderator Staff Member

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    We've just heard from our friends they had to show their form at the border, but it was simply glanced at. Seems like things are fairly loose.
     
  15. euro73

    euro73 Well-Known Member Business Member

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    The opposite has happened for me. Rate reductions and some timely restructuring have meant a 30K (ish) improvement to annual cash flow across my portfolio- even after having migrated the majority of debt to P&I over the past 2 years or so. I also sold an ex PPOR recently which netted me a little over 1 Million CGT free and I cleared some debt with that... and I have a pretty chunky series of refundable tax offsets coming my way shortly for NRAS properties... which will go towards some additional debt reduction.

    In Goulburn, where we have just handed over the first 8 Dual Occ's we are building there, all the properties have been rented very quickly and at small premiums over what we had estimated. Local tenancy managers are advising that the only rental challenges there have been for a very small number of commercial premises...resi hasn't been affected whatsoever . Same story in Orange. I know that's not the case everywhere, but given the concerns people rightfully had just 8 or 9 weeks ago about the potential for massive issues with rental reductions or non payment, it's quite remarkable how well things have played out for the most part, for most people.
     
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  16. kierank

    kierank Well-Known Member

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    We are the same. All IPs are rented and all our tenants are paying full rent and none are behind in their payments.

    One of our tenants, our highest priced IP, has paid 16 weeks in advance. Great for our cashflow.

    Gotta love a pandemic, from a financial point of view (not from a health perspective).
     
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  17. Casteller

    Casteller Well-Known Member

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    Think you´re in a tiny minority where this pandemic has been good financially.
    Massive queues at unemployment offices, banks and charity food banks say otherwise.
     
  18. kierank

    kierank Well-Known Member

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    For us, this was always a health crisis.

    We stress-tested our income from our property portfolio and, with our significant cash reserves, this was unlikely to be a financial crises.

    Hopefully, the world will value and better understand the benefit of significant cash reserves.

    It seems that prior to COVID-19 many didn’t
     
  19. Lizzie

    Lizzie Well-Known Member

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    One is reduced, but it was a 4 month, closed end lease so expected. All others the same
     
  20. PropDir

    PropDir Well-Known Member Business Member

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    All fine except one, which required a 30% rental reduction.