Why looking for positive cash flow properties in 2024 could lead to disaster

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Financial disclaimer: I am not your financial advisor and the opinions I share in this video are purely my opinions. This is not to be considered personal advice as it is general in nature.

[@ES-yz4rb]

Good video. The key factor here is location. If you replaced 'remote mining town' with capital city. Then great deal. As PK Gupta would say. - the right property in right location. This is an example of right property in the wrong location

[@rubenh2480]

Hi Niro. Would it be better to buy a second home and secure another bit of land/home or build at the rear of a property I already own? Thanks.

[@gregorymcmahan3914]

Good job, Niro! Just keep in mind that one can be "negative" on the income statement, yet "positive" on the cash flow statement, and that just because something is supposedly "positive" that does not necessarily translate into cold, hard cash to spend (which is what the poor investor in this example is looking for). And you are spot on: this is a bad right out of the gate, and it will likely get worse as the years pass and the investor sits on the property. I also see that you have abandoned the whiteboard in favor of solid graphics. Your presentation game has definitely improved. Still, I miss that whiteboard action... Would you mind if I referred some folks that I work with to your channel who are in dire need of your brand of kind, clear-eyed slugs of real estate reality? I think that they would benefit from your wise counsel. Yet another solid video. Keep up the good work!

[@ritaghosh7516]

Perfectly said!

[@jg5032]

What about the depreciation and the persons marginal tax rate? Is it new? The property could easily be positive cashflow by $5,000 per annum.

[@vinnishbaby7222]

Thanks Nero.

[@InvestmentRiseTV]

My pleasure 👍

[@carinfoaustralia7474]

I can't agree with the calculation, with 6.5% interested Interest only, yearly P+I is 22k+, 3k above shown here. however, Interest only is $20.6+. More importantly from where that 20% deposit will come? Money isn't cheap nowadays. If you are about to get the whole loan, then P+I is 28k, plus other expenses around 6k, totaling 34k. while getting rent only 24k, you are out of pocket by 0K. If you take Interest only, your out-of-pocket will be around $7. If that suits anyone, you should go ahead and consider other parameters such as the location of investment, future growth, etc. Please correct me if I am wrong.

[@neck_minnet8939]

There’s no way rates and insurance were that high. Also 8.8% for PM. I dono.

[@sidaraengelhardt2529]

There are many agents charging 9% PM in Perth at the moment. High but not unheard of.

[@charithsuminda123]

ha ha Classic Gambler not an investor. Can you guarantee Capital Gain ?

[@fredsalfa]

I hope he didn’t buy that property then

[@InvestmentRiseTV]

He did!