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Positive cash flow property has some major advantages over negatively geared property. Here are 10 reasons positive cash flow property is awesome.

2 Properties to Financial Freedom - https://onproperty.com.au/2properties/

0:00 - Introduction

0:45 - #1: You can start making money from day 1

1:54 - #2: They can pay themselves off

2:54 - #3: They can help you when life gets hard

4:20 - #4: You don't need capital growth in order to make money or achieve financial freedom

5:07 - #5: It can help you to finance more properties

5:55 - #6: You can get capital growth AND cash flow

6:59 - #7: Cashflow tends to improve over time

8:13 - #8: They can protect you from future interest rate rises

9:03 - #9: You can even make money in a downturn

9:54 - #10: Positive cash flow properties can give you financial freedom

Resources Related To This Article

Advanced Suburb Research - https://onproperty.com.au/suburb/

Recommended Videos

The Problems with Positive Cash Flow Properties - https://www.youtube.com/watch?v=xTdIXWi-SPw

Transcription:

If you're considering whether or not you think positive cashflows, a good strategy for you, then it's important to look at some of the advantages and disadvantages. I remember doing this back in the day when I was looking at which investment strategy too I want to take, what do I want to pursue? What are the advantages of positive cashflow? What are the advantages of negative gearing? What are the disadvantages of each, so it's really important that you consider these and then consider how they fit into your financial goals and your investment strategy. So in this episode we're going to look at 10 advantages of positive cashflow. Hey, I'm Ryan from on property, helping you achieve financial freedom that let's get into it and look at the 10 advantages of positive cashflow. The first advantage is that you can start making money from day one. If you invest into negatively geared property, you'll be losing money from day one and you need that property to go up in value in order to make money.

You also have cost to get into the property expenses like solicitor fees and mortgage fees as well as stamp judy. There's a lot of costs to get into the property and if you want it to sell to liquidate your equity, then you've obviously got real estate agent fees as well, so you need that property to go up a significant amount before you make any money. However, with positive cash flow properties, because they're making their money in rent, so the rent coming in is more than the expenses going out. You have potential to make money from day one. If your property is rented or if it's not rented on day one, then a couple of weeks in you can turn into a positive cashflow property. This is really exciting to see yourself making money from the very outset of your property and obviously you can have potential for capital growth as well.

The second reason is that they can pay themselves off. Me and Ben Everingham, the buyer's agent from pumped on property have taught a lot. We Bang on the drum of the two properties to financial freedom strategy. We've purchased two properties build to granny flats. You have for incomes coming in and then if you pay off that debt over time, eventually own those properties outright and that rental income can create financial freedom for you. One of the awesome things about positive cash flow properties is that they can pay themselves off because you've got extra money coming in in the form of rent, so your rent is more than your expenses. That leaves extra money left over to put on your mortgage and to pay off your property. You might start with an interest only loan so you're not really paying off the property are you just putting little amounts into the offset, but eventually as your cashflow increases, you can switch over to a principal and interest line and then that proper...