Positive cash flows returns

How would you like to buy a property that puts money back into your pocket at the end of every month?
Well, positive cash flow property is back on the agenda in 2009 thanks to falling interest rates and rising rents. Australian Property Investor magazine’s March issue reveals where investors can look for such properties – and it’s not just in mining towns any more.
"The combination of escalation rents, rapidly falling interest rates and the availability of good deals in a buyers' market has put cash flow positive property back on the cards in 2009," says API deputy editor Matthew Liddy.
"Positive cash flow property is often linked to mining towns – where workers have created a huge demand for rental property – but it's now becoming available in other parts of the country as well," Liddy says.
"In fact, property investors are reporting that cash flow positive property is there for the taking on the outskirts of Australia's capital cities."
Liddy says that some investors focused on a strategy of negative gearing have been known to wonder why you'd invest in a positive cash flow property when owning that property might bump you up into a higher tax bracket.
"But to the positive cash flow fan, that's a little like asking why you'd accept a pay rise given it might mean you'd pay more tax,” he says.
"This conflict just serves to highlight that different people invest in property to achieve different aims."