How to get Positive Geared properties

My next one will be a regional fixer-upper I only want to get another two, maybe three though, then off to semi-retire to the mountains. They'll all pay themselves off and be completely paid down by the time I'm retirement age.

 

Both. My own that I've sourced and some they recommend. I've used them before so know they charge sensibly and do a proper job. I always get fixed quotes any extra costs they call me personally.

 

Some already mentioned G/flats, however there are pros and cons with this one, I would not build new.
I would make sure where you buy there is a demand for this product, if it takes too long to rent you will not have a cash cow but a problem.

Developing property on a small scale can provide chunks of money, however you need large cash buffers dependent on size of project and also important to time the market for this one, otherwise you can also lose money.

Review your properties, if you have had significant growth and markets are peaking, take some money off the table and reduce debt? I know this is a dirty word? why sell?? well it can improve cash flow, reduce risk/debt and help with servicing loans moving forward.

Also, the goal is financial freedom, not the number of properties you hold.

MTR

 

Great comments @MTR , especially about selling if the market is peaking to reinvest the profits in other markets. When thinking about GF's etc, also consider the next purchaser. If this property is ever sold, consider who might buy - would OOs be attracted to the property with a GF? How many other GFs are in the area etc (this could indicate either your competition and/or the community's tolerance for GFs)?

 

G/Flats
Its also about configuration, you need the right set up with g/flats, ie own entrance would be ideal

 

Yep....GF can be an equity destroyer.

The money spent on it will be CF only...you may not get it back.

 

What sort of net yields are you seeing in
Metro and Regional?

 

Any one chasing rental yield:

• SMSF

• PI

The types of OO's that would be attracted to a property with a granny flat, tend to be:

• Those with elderly parents who want to live independently but whose (middle-aged) kids like to be near, to keep an eye on
• Those with older teenagers who have mates around playing in a band, practicing drums etc
• Those with a daughter (often with a child) returning to live at home after a relationship breakdown
• Those just wanting a bit of extra income to supplement their super / pension
• Those who need a separate home office

So, in my view, these types of properties are always in demand.