Who we are
Hi, I’m Peter Vickerson the owner of Positive Cashflow Investment Property (formerly Freedom Road Investment Properties). I established Freedom Road Investment Properties when I ran a large successful mortgage broking business, ABC Mortgages. We organised the finance for many investors who had purchased an investment property. At the time, I would often often think, “If it was me, I don’t think I would have bought there”, but it wasn’t my job to comment on their purchase, it was to get them their loan.
So it became a natural progression to help clients to source their properties as well. So much so that I established Positive Cashflow Investment Property to do just that. The name reflects my belief that the only safe way to invest in residential property is to buy property that shows significant positive cash flow.
It is a boutique operation; just myself and my PA, Bridget. I like to offer my clients the personal touch and to be accessible for them which is why I like to be actively working with no more than twenty clients at any one time. This also leaves me enough time to be able to indulge in my favourite pastime, bushwalking.
What we do
I’m passionate about property because I believe it is the safest way for the average employee to achieve financial freedom. I define financial freedom as earning enough income from your investments so that the only reason you’d continue to work is because you want to, not because you have to. To achieve this, your minimum goal would be to replace your current income.
I believe that property rather than shares is the safest way for you to achieve this goal. The banks think so as well, because they will lend you up to 95% of the purchase price of a house and land package, while they will only lend around 50% of the value of a parcel of shares. For me, this simple fact says it all about what the banks think about the safety of each asset class. If you are convinced, as I am, that property is the way to go, there are only two further questions to ask:
- New or Old?
New or old?
New beats old, hands down. There are several powerful reasons:
- Depreciation: This is the crucial factor. With a new investment property you can write off the construction over 40 years and the fixtures and fittings over 10 years or thereabouts. This will give you an extra tax deduction of around $10k per year and is one the reasons that makes my preferred area cash flow positive for so many of my clients. Property investment is one of the very few ways that PAYG employees can legally minimise tax. Because of the unique situation in NSW (I live in Brisbane, by the way) it is possible to be cash flow positive AND still legally minimise tax.
- Low Maintenance: A new property will require very little maintenance. The builder provides a structural guarantee for the first six years and all the appliances are covered by warranty. I have a couple of older properties which are costing me an arm and a leg and I can’t wait to get rid of them when the market improves and replace them with new. I spend at least $3k on maintenance and repairs on each of these per year.
- Tenants Prefer New: If you were renting which would you prefer if you had the choice? Obviously the new one will have more appeal and greater demand and will achieve a higher rent.
I do the hard yards for you. I have researched the Australian property market to find those locations that have the greatest yield, best growth prospects and lowest risk. Once I’ve located the area, I then look for the builders with the best track record in terms of build quality and length of time in business. I have selected several excellent builders in my preferred areas, the Golden Triangles of Queensland and NSW.
Don’t make the mistake of thinking that you need to buy close to where you live so you can “keep an eye on it”. If you are going to build a property portfolio you need to buy where you can get the best yield and expect greater growth. That may be the suburb where you live but chances are it’s not. Let a professional property manager keep an eye on it for you.
We have investment properties in Queensland, NSW and South Australia but I have two preferred areas in Australia that I believe are standouts, returning high yields and low vacancies. I refer to these areas as the Golden Triangles.