We’ve all heard about positively geared investment property.
Positively geared investment properties are the ones that provide you with additional income after you’ve paid your loans, insurances, managers and maintenance.
We read stories about investors with portfolios filled with positively geared property.
But when most of us start to look, these properties are nowhere to be seen?
This was also my attitude until a few years ago.
After learning how to identify a positively geared property I realised there are literally thousands of suburbs across New South Wales, Queensland and Victoria with positively geared investment properties available right now with return ranging from 6% to 10%.
In 2011 I found a suburb called San Remo in New South Wales. San Remo is just over an hour north of Sydney where savvy investors can still buy houses for well under $250,000. I actually bought a five-bedroom house there for $213,000, which is currently renting out for $400 and provides me with a passive income of over $10,000, before tax per year. This equates to a pre-tax return on investment of 14%+.
In 2013 I found a builder in South East Queensland who was building two-story dual occupancy houses in Kallangur. This house and land package cost me $394,000 and is currently renting out for $620 a week. This equates to a pre-tax return on investment of over 7% and an after tax return of over 10% (when depreciation is factored in).
In 2014 I built a house in Birtinya, a suburb on the Sunshine Coast in Queensland. The house and land package cost me $430,000 to complete and will rent for $550 a week, giving us a pre-tax return on investment of over 6.65% and an after tax return of 9% (when depreciation is factored in).
The thing these three properties have taught me is that positively geared properties with moderate opportunity for capital growth do exist.
Resources like the Residex top 100 rent report provide a fantastic place to start, as do the back sections of property investment magazines like Your Investment Property and Australian Property Investor.
You don’t need to be an expert to find these properties and you don’t need to pay an advisor $20,000 – $30,000 in commission, which are loaded into your purchase price, to find you a 6% return in an outback or mining town.
If your looking for a positively geared property and you don’t know where to start please send me an email. I’d be happy to answer any questions you many have and discuss how I found the positively geared properties I now own.
Want to learn more about Ben’s property portfolio?
- Ben’s 5th investment property – 4 bedroom house in QLD – 2014
- Ben’s 4th investment property – 4 bedroom dual occupancy house in QLD – 2013
- Ben’s 3rd investment property – 3 bedroom house in QLD – 2012
- Ben’s 2nd investment property – 5 bedroom house in NSW – 2011
- Ben’s 1st investment property – 2 bedroom unit in NSW – 2011
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