Tag Archives: Cash flow positive

Grant Hoey Answers Questions About Apartment Investment

PropertyTutors.com are talking with Grant Hoey on Apartments, property investment nz and strategies. Grant gives his views on a number of areas of investing in Apartments.

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Cash Flow Neutral

Cash flow can be positive, negative or neutral. It is positive when the inflow as income is higher than outflow and expenses. Negative cash flow refers to a situation when the income is lower than the expense and neutral cash flow refers to a state when the income matches expenses. In the property sphere, cash flow neutral implies that the rental income matches the expenses involved in holding a property. Since they are equal it means that the rent exactly covers the expenses including maintenance charges, loan installment, insurance, and other charges.

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Cash Flow Positive

Property that is cash flow positive is the best investment to make. Cash flow positive means that the returns or income is more than the expenses incurred. In the case of property it implies that the returns from it, in the form of rent, is higher than the expenses involved in maintaining that property. This implies that the property investor is able to save some amount each month after paying off all the property dues.

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