Has your cashflow taken a hit

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.

 

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.

 

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

 

Reduced rents, reduced dividends, reduced income (business)

 

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...

 

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

 

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.

 

Sorry to hear this, Massive hit

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

 

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

 

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.

 

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.

 

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.

 

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).

 

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.

 

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

 

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

 

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