Gentrification! A Property Investors BIGGEST Opportunity for Capital Growth
Forget the fairy tales. The real way to live happily ever after is to live passively ever after – that’s by owning income-producing real estate and rental properties that provide you with enough cash to live off.
Choosing the right real estate in the right locations is key to creating properties that won’t only increase in capital growth over many years, but will start creating a steady income of cash into your back pocket much faster than that.
Cash flow is king when it comes to creating successful businesses, and if you want to build up a portfolio of real estate then you’re in the property business. Without cash flow, you struggle. Businesses fail. Cash flow is the key to cracking the puzzle of real estate investment.
So how do we create cash flow from our properties fast?
This one comes with a warning sign, but we’ll get to that in a moment.
Regional properties can be cheap to buy, but yield great rent rates…IF THEY’RE IN THE RIGHT PLACE!
Regional towns need industry to ensure they’re going to remain an attractive place to live or stay. If there’s tourism, plus mining, plus culture, plus wine – the region will attract visitors and long-term tenants into the future.
However, if the properties in a regional location are going for a song because the industries are dying and people are moving out in droves, you’ll end up with a cheap house that won’t appreciate in capital growth and won’t have good rent rates. In short – do your research. You’ve got to be very sure that the town is going somewhere.
Airbnb is a great way to create cash flow because you can do it in the areas that are also best for capital growth – for example, urban areas rich in lifestyle, fun, energy, and business and holiday opportunities. Think of it like Monopoly. Who charges more rent? The hotel owners.
By turning your real estate into an Airbnb property, you’re technically a hotelier or rent entrepreneur. And if you choose the right location (meaning urban place locations with high liveability), your property will also be attractive to long-term tenants, meaning even if something like COVID puts Airbnb on hold for a while, your property should still rent well.
Additionally, you can become an Airbnb host and rent out a spare room in your place of residence. Boom – an instant $10-20,000 a year income. If Airbnb appeals to you, buy properties in areas that are close to great infrastructure – such as hospitals, convention centres, sporting event locations etc – no more than 5km from a CBD.
INVEST IN A POD
Want to ensure great cash flow? Invest in a POD – that’s a pedestrian-oriented development area.
These are the places where you don’t need a car. You can walk to work, to school, to restaurants and beaches and green space. These areas have a great walk score and have a much higher capital growth rate than those areas where cars are essential. If you can find a property in an area that’s high on the walk score, it’s going to be worth much more in the future, from a rental perspective, particularly if it’s a productivity centre close to a CBD. Find out how your suburb ranks on the walk score here.
DUAL INCOME PROPERTIES
Find a property – such as a small block of units or a duplex – that provides more than one income stream from the same title of real estate, and you immediately increase your cash flow potential. Having more than one property on the same piece of land essentially creates multiple income streams, which is what we need to live that ‘passively-ever-after’ life we’re dreaming about.
FIND OUT MORE ON HOW TO INCREASE YOUR CASH-FLOW
This is where Positive Real Estate can help you at one of our free property investing events.
Good property investors are nimble and adapt fast. They stay informed and enrol a team of experts to help them excel in times when others can’t. To find out how you can be one of those people, we’re running a free a property investing seminar.
Here you’ll be equipped with the tools, resources and support to thrive, and not fall behind on your path to financial freedom – whatever that may look like for you.
Book your spot now and find out what you need to know about the current market landscape and how you can make it work for the ultimate wealth creation opportunities.
By Sam Saggers