Beware FALSE Claims Of Positive Cash Flow

As the real estate market appears to be 'bottoming-out', claims about cash-flow positive property are becoming more prevalent. A timely WORD OF WARNING -- don't believe them.

We always 'do the numbers' and can tell you (more often than not), claims of positive cash-flow are totally unfounded.

One thing to bear in mind is that everyone's personal circumstances are different. You need to consider such things as your marginal tax rate (the highest rate of tax you pay), the legal structure within which you are purchasing (your own name, a company or trust) AND when the particular property was built (this will impact your depreciation).

The other issue is the confusion surrounding the definition of 'positive cash-flow' - of which there are many. We suggest you have your Accountant look over the numbers before you purchase.