Crystal Blue Homes Cashflow Positive
Investors generally invest in property that don't have any cashflow positive income. You can’t move forward so your portfolio becomes very stagnant. Obviously one of the reasons you think of investing is to acquire extra cashflow in your life. A positive cashflow property puts money in the investor’s pocket before tax. All costs (expenses and mortgage repayments etc) are covered by the rent and there is still money left over. Be careful however some agents advertise that a property is Positive Cashflow….when realistically it is negatively geared and becomes cashflow positive only after tax deductions are made!
The benefits of a positive cashflow property in your strategy are clear. The property pays the investor for having it in their portfolio. Positive cashflow property increases your serviceability therefore it makes you more attractive to banks and lenders; increasing your income and giving you the ability to borrow more. For investors looking to balance their portfolio, the extra income from positive cashflow properties can be used to cover the shortfall associated with the costs of holding high capital growth properties. It is possible to turn a negative cashflow property into positive cashflow. The right loan product with a split facility could be the answer or recycling equity could solve the problem.
