When it comes to property investment there are some things you can never have enough of.
When it comes to property investment there are some things you can never have enough of. Good tenants, reliable builders, a great relationship with your bank.
But more than anything what you need is good cash flow.
Having a steady income of cash means never having to dip into your own pocket to top up repayments, complete repairs or make another purchase.
Here are the top five ways you can ensure the cash keeps flowing, so you can keep your investment portfolio growing.
Location, Location, Location.
It makes sense that you will always get a greater rental yield in areas where people earn more.
Properties in capital cities and their neighbouring suburbs are more popular than homes in small, out of the way towns, due to their overall convenience.
By definition this means they will yield much higher rent and offer you greater income possibilities.
Two For The Price Of One
Being able to draw two incomes from one property is a great way to ensure healthy cash flow.
A house with a studio or granny flat is an excellent example of this, as is two apartments within one house.
Two dwellings on one title will garner a significantly higher income for very little extra effort on your part, so keep this in mind when you’re looking for your next investment opportunity.
Put It On Display
This one is a bit left-field, but stay with us. Display homes are a great investment for cash flow. Tricky to find – you may need our help with this, so get in touch – but once you do, they can be a hassle-free goldmine.
Investors can purchase the display home that builders run their office space or sales desks from.
The contractors will give you a locked in, long-term lease agreement, meaning you’re guaranteed that income, and the house and land is beautifully maintained.
This kind of property can be expensive, but if you can afford it the cash flow potential is exciting.
Short Term Letting = Long-term Savings
If you’re smart about how to approach it, short-term letting (think Stayz, Airbnb etc) is a fantastic way to increase your constant cash flow.
If you have a property close to the CBD or beach, then you’re in an ideal location to exploit all of the things people want from a short-stay property.
Think tourist drawcards – restaurants, cafes, museums etc. If you only want to short-term lease intermittently then take time to do the research into when the high seasons occur and you can charge more for rent i.e. school holidays, Christmas, summer, Easter etc.
It’s also worth keeping an eye on big events coming to your city that might attract a higher number of visitors, all looking for a convenient place to stay.
And if you don’t want the hassle of managing all the coming and going, there are agencies that will do it for you, meaning all you have to do, is sit back and let the cash roll in.
Room By Room Means Cashflow Boom
You need the right kind of property for this so you can turn rooms into independent, self-contained living quarters, with small kitchens and bathrooms.
It’s vital that you create these dwellings correctly with the right kinds of health and safety standards, fire codes etc, so do your research and get it right.
Once your set-up is done you can start filling rooms with tenants. In a house with six or more independent ‘suites’ your cash flow will increase exponentially.
You could also approach a university or a government agency to let the rooms as a group, which could make life easier in the long-run as your contract would be with the one provider of tenants rather than many individuals.
You’re invited – Property Investor Night
For more ideas on how to increase cash flow, and tips on the best way to get it done, sign up for one of our free property investing seminars.
Book your spot now to get some resources, tools and strategies to help you build the framework for a bright financial future.
Book here – Property Investment Seminar
Founder – Positive Real Estate