5+ Easy Ways To Invest In Property That Will Skyrocket Cashflow In 1 Year

If you’re looking to invest in a property which increases your cashflow within a year, you’ll be pleased to know it is quite possible to do.

A positive cash flow property is one where the income is greater than the expenses, which will include things such as your mortgage repayments, insurance costs, rates, maintenance costs and agent fees. You are choosing a property which brings the certainty of a regular income rather than a quick capital gain.

The preliminaries

You’re going to need to do some research before you begin. This will help you identify the areas which are cashflow hotspots and assess your finances to see which will work best for you. You will need to answer these questions for every property you look at.

What rent will it bring and is that enough to cover your mortgage repayments and expenses? Is there a high demand for rental properties in the area? Are there any trends which might affect the property, e.g. new industries or new shopping centres being built. Is it a high growth area? Are there many similar rental properties on the market which could compete against yours? In what condition is the property? How much ongoing maintenance or updating will it need?

5 Ways To Invest

So where do you look for these ideal positive cashflow properties? Well, there are 5 places which can be relied on for positive cash flow properties.

Rural and regional areas

Tree change is all the rage these days and many people will rent a property for a couple of years while they hunt for a home of their own or get a feel for the area. In addition, they will have competition from young locals who don’t want to leave the area or their jobs. The growth in many regional areas, especially those within commuter distance from the city, is huge. There are not enough rental properties available to meet demand, and property prices are usually lower than urban counterparts.

Dual occupancy properties

These are properties which have a shared roof and shared block. Because you own both properties, there are no body corporate fees to pay. You have the benefit of two rental incomes instead of one, and if one home is between tenants, you still have some money coming in.

Granny flats

This is not allowed by all states so check before you buy or build a granny flat. These smaller homes are very popular and are a secure rental. If you are adding it to land you already own, it’s cashflow from the beginning.

Commercial premises

A home which is used as professional offices will bring a regular and reliable cash flow. The tenants will be there for the long term, so your income is almost guaranteed.

Properties needing some TLC

Are you handy? If you spot a property which needs a garden overhaul and a coat of paint, but which is still solid, you will probably get it for a good price, meaning you have a lower mortgage. Once it’s updated, you can rent it out at the going rate and get a good value for your money.

It might take a day, it might take a year, but when you choose your investment property carefully, your cash flow will skyrocket. Do your figures and seek the help of your accountant so you’re confident in your purchase decision. This could be the first of many.