9 Problems with Positive Cash Flow Properties

Published: Jan. 28, 2019, 8 p.m.

b'ARVE Error: Mode: lazyload not available (ARVE Pro not active?), switching to normal mode\\n\\n\\n\\n\\n\\n\\n\\n\\n{"@context":"http:\\\\/\\\\/schema.org\\\\/","@id":"https:\\\\/\\\\/onproperty.com.au\\\\/9-problems-with-positive-cash-flow-properties\\\\/#arve-youtube-xtdixwi-spw659a0b2c905ec684241826","type":"VideoObject","embedURL":"https:\\\\/\\\\/www.youtube-nocookie.com\\\\/embed\\\\/xTdIXWi-SPw?feature=oembed&iv_load_policy=3&modestbranding=1&rel=0&autohide=1&playsinline=0&autoplay=0"}\\n\\n\\n\\n\\n\\nPositive cash flow properties can be a great way to make money and achieve financial freedom but they aren\'t without their faults. Here are 9 problems with positive cash flow properties.\\n\\n0:00 - Introduction\\n0:26 - #1: They are harder to find\\n1:15 - #2: Sometimes less desirable properties or areas\\n2:26 - #3: Not positive cash flow if not rented\\n3:19 - #4: You often have to manufacture cash flow\\n4:09 - #5: Maintenance can make you negatively geared\\n5:11 - #6: You can potentially lose out on capital gains\\n5:42 - #7: Profits generated are subject to tax\\n6:31 - #8: Property prices may be more volatile\\n7:08 - #9: Properties may be more difficult to sell\\n\\nRecommended Videos\\n10 Advantages of Positive Cash Flow Property - https://www.youtube.com/watch?v=v6WqFXKfh3k\\nTranscription:\\nI love positive cash flow properties and they can be a great way to invest with low risk and to achieve financial freedom, but there are some problems with positive cash flow properties that you should be aware of before you decide what you want to go ahead and invest in. Hey, I\'m Ryan from on-property, helping you achieve financial freedom and tell you we\'re going to look at nine problems with positive cashflow property. The first problem is that they are harder to find negative geared properties are available all over Australia in every single metro market. Wherever you look, you can find negatively geared properties, but if you want to invest in positive cash flow properties, they are harder to find. You need to find an area that has a higher rental yield than average or you need to find properties with unique characteristics that generate a positive cash flow.\\n\\nSo this might be Julie income properties, or it may be a property where you need to actually create the cashflow yourself through a building. Something like a granny flat, but yeah, negatively geared properties are available everywhere. You can have your pick of the litter positive cash flow properties a hard as a fine and they do take more research in order to find the right property. The second problem is that sometimes the properties are less desirable or less desirable areas. Generally speaking, you can often find positive cash flow properties in low socioeconomic area, so in the poorer areas of a town or a city where you\'ve got government housing and things like that. Prices don\'t tend to be as high, but rental yields tend to be better compared to the price of the property, so you\'ve got higher rental yields in those situations which can lead to a more difficult property or a less quality property because your tenants aren\'t going to be as good and you\'re not in that owner occupied area.\\n\\nAlso, you are limited in the areas that you can invest sometimes as well, so you might be restricted to regional centers. That\'s a really easy place to find positive cash flow properties. Or you might be restricted to these areas of this suburb that aren\'t full of owner occupiers. So this is sometimes the case. Obviously, the more research you do and the more specific you are, you can find positive cash flow properties that are in great areas, but they\'re just harder to find, which goes back to step number one. Step number three is your property\'s not going to be positive cash flow. If it\'s not rented, most properties, you\'re going to have one source of income. This is the same as having a job. You got one source of income that you\'re completely reliant on, and if you\'re not getting that source of income,'