Ultimately the ability to continually purchase properties will be based on the amount of debt you are able to service with your combined cash-flow from your Salary, businesses and investments. As property investors this is where ensuring your portfolio is balanced with positive cash-flow properties is beneficial.
After the so-called global financial crisis and the battering shares and managed funds received, some investors are turning to property to provide an investment portfolio to not only keep pace with inflation, but also provide cash flows into retirement.
As we have discussed in previous articles, property is the choice of many investors due to its tangibility and its performance over time.
Buying negatively-geared property places importance on the capital gain where the gain will be greater than the shortfall you need to kick in from your cash-flow to support the property.
Positive Cash Flow means that after all expenses, entitlements and deductions your property doesn’t require any extra help to meet its expenses from your cash funds.
The key to finding positive cash flow properties is research.. This is explained in detail at our complimentary Property Investor Consultation.
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