Cash Flow Positive Brisbane Investment Property
Cash Flow Positive Brisbane Investment Property in the suburb of Bethania. This is a great purchase for a client with a budget of $350,000. You have to be very careful when buying a cheap property in Brisbane as there are some suburbs that are cheap and will stay cheap. The houses are generally of a poor standard which of course attracts the type of tenants that would rent that type of home. Suburbs like Kingston that when you view on Realestate.com look very attractive due to their low prices but this is not a place you want to invest.
When we get a budget like this, we go to 3 suburbs with each one having their own factors that determine why we are looking there. In this case we have gone to Bethania and purchased a bedroom house for $340,000. It’s within walking distance to the train station, shops and schools.
I see so many clients who want to spend big on a property but when you look at the numbers they get a very low return. As soon as you go over the $550 to $600K price range, the returns drop and you end up having to pay money into the mortgage.
Thats all great for tax purposes but what about cash flow. If you can secure a good property for under $400,000 you will end up with a return of over 5% and at the end of the day, that percentage return is what it is all about. If you are outlaying and borrowing money to purchase a asset and you can get a property that pays for itself completely, You end up with an asset that you will own in the future without ever having to contribute towards.