Why Positive Cash Flow is so Important

Two Reasons Why Positive Cash Flow is so Important

At Dashdot, we’re big believers in only investing in properties that deliver positive cash flow.

That’s why the high yield is part of our Holy Trinity for finding a high-performance property.

However, we know you’ve heard other investors offer different advice.

Maybe you’ve heard a lot of talk about negative gearing...

...and investing for tax benefits.

You find yourself wondering if positive cash flow is really that important.

Here are two reasons why it is.

Reason #1 - It Increases Your Serviceable Income

Your goal is to buy property consistently over and over again.

That’s how you build a stable portfolio...

...that will support the future you want to create.

To do that, you’re going to have to deal with lenders.

That means you’re going to face the possibility of your application getting rejected.

Investing for a positive income lowers that risk.

It means that your properties generate an income...

...from the moment you take on a tenant.

Lenders see this and account for it when figuring out your serviceability.

That means a higher chance of you getting the loan you need for your next property.

And if positive cash flow runs through your entire portfolio...

...you’ll always have leverage when you need to borrow.

Reason #2 - It Protects You from Risk

Property investment can be a risky game.

You’ve undoubtedly heard about or...

...experienced the market downturn in places like Sydney and Melbourne in 2019.

You want to mitigate your risk as much as possible...

...which is why you want to go for positive cash flow.

In fact, you stand to benefit from this strategy if there’s a market downturn.

Rental demand tends to increase when the property market starts struggling.

More demand means more profit for you.

Plus, a positive cash flow ensures you can still handle the costs of your property if the market takes a turn.

You can even use surplus cash flow to top up the equity if the market REALLY gets hit hard...

So, positive cash flow makes it easier to build a portfolio and protect your investments.

Now, it’s time to find the high-performance property that’s right for you.

Want to buy Positive Cashflow Properties (and still get strong growth)?


And remember, stay awesome, and keep dreaming bigger.

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