How to find positive cash flow properties in Australia

How to find positive cash flow properties in Australia?

When it comes to finding a piece of real estate that’s going to make you money, the task becomes even tougher. However, there are plenty of options out there if you know where to look and what questions to ask.

#1: Search for properties in high-yielding suburbs

As you thoroughly search for the right location and property to invest in, take a look at the latest market data on the highest rental yield suburbs. This will not only help you to make an informed decision but also spot any properties with the greatest potential.

The key is to find affordable properties in high-demand areas because you are more likely to achieve positive returns by having lower mortgage payments.

It is important to note that you can find positive cash flow properties in regional areas, not just in capital cities. Rural town centres and mining towns have great opportunities too because properties in these locations are generally cheap and there is a substantial amount of demand.

High-yield rental properties, when combined with strong capital growth, can help investors have a thriving portfolio and succeed in the long run in their wealth-creation endeavour.

#2: Consider buying a multiple-income property

Most property investors would buy several houses to build their portfolios. However, doing so can be quite expensive and time-consuming, especially for those who are just starting in the real estate game.

Multiple-income properties are essentially properties divided into several units or dwellings. They can be in the form of duplex houses, granny flats, or even student housing units in apartment buildings.

These properties become positive cashflow properties as they provide a greater rental return because each unit has a separate tenant. There’s a great demand for these types of housing, especially in areas that target student or elderly accommodation.

#3: Add value through renovations and improvements

In the search for affordable properties, you may have encountered run-down properties sold at a huge discount. These can be quite tempting, as most buyers want homes that are ready to move into, or don’t want to go through the hassle of renovations.

As an investor, such property can offer you an opportunity if you’re willing to do the hard work. You can even do this with a property that you already own.

If you keep your remodelling expenditures reasonable, you might be able to buy a house for far less than market value and generate both equity and a positive cash flow.

However, you have to be very careful, as there is no guarantee that you can achieve positive cash flow immediately. Make sure that the property is liveable enough in the first place and that it only needs a bit of refurbishment and TLC so that you won’t be losing a lot of money.

Conclusion

When it comes to investing in property, finding one that will generate a positive cash flow is just one strategy investors can take. But when it comes to finding this type of property, it can be tricky if you don’t know where to look.

Doing any of the three tips we’ve discussed above can be a great first step in your investment journey. As a beginner, Smart Property Investment has plenty of resources available to help you figure out how best to find positive cash flow properties.