How Can I Maximise my Cash Flow?

There are two main ways to maximise your cash flow when buying an investment property.

• The first is to make sure you set up a loan that either has a redraw facility or a line of credit.
  
  This will be used to enable you to capitalise your ongoing expenses such as rates, body corporate fees, agent fees & maintenance of the property.
  
  What this means in effect is that we borrow the money for these expenses and as we do the investment loan increases by about 1% per annum on average.
  
  You must remember this increases your cash flow by the same amount as the growth in your loan enabling you to reinvest sooner.
  
  
• The second is to buy wisely, in other words a property that will have rental income growth and be attractive to tenants to minimise vacancy periods.