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VIC Is it positive to help me finding cash positive suburb in Melbourne?

Discussion in 'Where to Buy' started by NewbieInvestor, 2nd Aug, 2015.

  1. NewbieInvestor

    NewbieInvestor New Member

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    Hi Guys,
    I am new investor and looking to invest in Melbourne but I am not able to find any suburb where I can find cash positive property.

    Is it possible for you to guide me which suburb I should look for cash positive suburbs?

    Thanks in Advance for your help.
     
  2. legallyblonde

    legallyblonde Well-Known Member

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    I just googled 'High yielding suburbs Melbourne' and it offers lots of suggestions.. The higher the yield the more likely it is to be cash flow positive. Time to start running some numbers. Good Luck
     
  3. TMNT

    TMNT Well-Known Member

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    I laughed at your title my friend

    Is it positive to help me finding cash positive suburb in Melbourne?
     
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  4. Greyghost

    Greyghost Well-Known Member

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    Your motive in this post is not very positive! See what I did there.. Lol
     
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  5. Beelzebub

    Beelzebub Well-Known Member

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    Carlton and CBD North near Carlton have some cash flow positive properties; however, most of them are student accommodation, very tiny <40sq and don't have much scope for CG. Make sure you avoid these. Either way you're looking at apartments in this market and a massive risk of oversupply pushing down or stagnating rents or prices.

    This property would be cash flow positive with a 6% yield
    http://www.realestate.com.au/property-unit-vic-melbourne-119943517

    Personally if you're after cash flow look at the major regionals: Bendigo, Ballarat and Geelong. I recently purchased a cash flow positive property in Ballarat.
     
    Last edited: 2nd Aug, 2015
  6. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    I know where you can get property that are roughly cash flow neutral in nice Eastern suburbs. Never mind that they're totally out of character for the location and haven't increased in value in the last 5 years (when the rest of the area has increased by about 60% in that time).
     
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  7. Pins

    Pins Well-Known Member

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    I can't tell if you're being sarcastic Peter or suggesting there's pent up growth there?
     
  8. JenW

    JenW Well-Known Member

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    Put down a 40% deposit and just about anywhere will be cash flow positive.
     
  9. NewbieInvestor

    NewbieInvestor New Member

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    Thank you every one.. just realise I have made typo in my title.. instead of Possible I wrote positive :)
     
  10. Peter_Tersteeg

    Peter_Tersteeg Finance broker and strategist Business Member

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    http://www.domain.com.au/for-sale/226b-1-19-colombo-street-mitcham-vic-3132-2012004628?sp=12

    Asking price $245k, renting for $280/wk (according to the add). Rental yield is 5.9% on asking price. Not sure what the holding costs are, but it's probably fairly close to neutral with rates of around 4.24%.

    No, I'm not suggesting there's pent up growth, despite better than average cash flow, I don't think these are good investments. There's quite a few similar apartments coming on line over the next few years, and if you wanted to live in an apartment, you'd live a lot closer to the CBD.
     
  11. ej89

    ej89 Well-Known Member

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    Melton
     
  12. D.T.

    D.T. Adelaide Property Manager Business Member

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    The deposit doesn't affect the calculations sorry Jen.
     
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  13. Be Developer

    Be Developer Property Developer Business Member

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    @NewbieInvestor

    look at northern suburb brand new villas/unit.. they could be cash flow positive!