Is it possible to buy cash flow properties today?
Yes, it is possible but they may be in areas where there are very little prospects of any capital appreciation in the near future. Beware of rental vacancies. No rent = No income. Research an area carefully to assess the risks. Ideally, you need some of both cash flow and capital appreciation to continue borrowing and buying. How can a negatively geared property be turned into a cash flow positive property? • Time: Wait for natural inflation to raise the rents until you show a profit. Wages increase over time, as do rents. If you have the income to hold the negative geared asset then rental returns will eventually grow enough to cover your expenses. It may just take a little while. • Refinance to interest only repayments: This could make a difference, as the repayments may be smaller than the rental income and thereby achieving positive cash flow. If you are worried about interest rate rises in future, then perhaps you could also investigate fixing the interest rate for a term. Always
