One of the main stumbling blocks to building an investment property portfolio is restricted cash flow. Most property investors in Australia sacrifice cash flow for capital gain by using negative gearing. Having a restricted cash flow can prevent you from moving forward and therefore making it harder to expand your property portfolio. One of the main reasons to invest should be to start generating positive cash flow, and this can be achieved by selecting the right property investments.
Positive Cash Flow Property Investment
A positive cash flow places money directly into your pocket. Positive cash flow property investments mean that all of the costs are covered. These costs include all property expenses and mortgage repayments, and there is a cash flow surplus leftover. This not only means that the investment is paying for itself but it is also generating an extra income. These types of investments increase serviceability, making you more attractive to banks, which then allow you to purchase more income producing assets. This ultimately increases your momentum and allows you to achieve financial freedom in a shorter period of time.
We use a number of different strategies to achieve these high yield investments. We source these investments in capital cities and we have never invested in risky mining towns to achieve these results. Investing in regional areas is risky as they suffer from high vacancy rates and the reliance on one type of industry. Although particularly in the early stages, cash flow is king when it comes to developing a portfolio, we also have several other strategies where we focus on creating equity. Equity is an important ingredient in a long-term overall wealth creation strategy. If you would like us to show you how to acquire many positive cash flow properties, please contact us for more information.
