Archive for July, 2009

Positive cash flow property appeals to most, the ability to own a piece of brick and mortar and have it put money in your pocket each week is an attractive prospect. Well according to an article in the Herald Sun (http://www.news.com.au/heraldsun/story/0,21985,25684245-5013926,00.html), here is an extract:

INTEREST rates are so low it’s possible to buy an investment property and end up with money in your pocket each week, thanks to rising rents and the lowest interest rates in a generation.

Financial planners say interest rates are so low that if you have a stable income and can afford it, now could be the ideal time to buy an investment property.

Huge shifts in the property market last year caused property prices to fall 2.6 per cent. Rents rose 11.2 per cent. Add generous tax rebates and it’s now possible to own new apartments for next to nothing — and in some cases receive a payment for buying.

MAB Corporation’s Richard Marshall says many investors are cashing in on the capital growth and unsurpassed tax benefits that buying property now delivers.

"In the current environment of tax concessions and low interest rates, property investment can actually be positively geared," he says. "An investor can buy a new apartment and have $50 extra in their pocket each week."

Frank Hellier of Malcolm’s Real Estate says many properties are moving into positive cashflow.

"The property you buy returns cash in your pocket every week, from day one," he says.

Investors looking at positive gearing can opt for bigger rental returns and earn money immediately from their investment without relying solely on future capital gains.