Cashflow positive properties are hard to get nowadays, I prefer the term cash flow performance or simply high yield. Ideally you should cover both with cash flow being the first priority and asset growth in second place. I would also content that long term capital gains of 5..6 % pa is a reasonable outcome and well above the CPI.
Good cash flow performance properties will yield a gross rental return of typically 5%..6% with proportional long term capital gains (5..6 %). 7%..8% gross return is possible, but its more on the exceptional side. Currently we see a typical log term CG of 10%, but it would not reasonable to expect that this will last forever. In my financial modeling I regard 4..7% as realistic long term return and more would be a bonus. Who agrees with that ?
I would love to see a few comments here !e
There is a trade off between cash flow and capital gains and a good long term investment strategy will provide the investor with both. Risk aversion is mandatory if you are a starter and not a high income earner. Buying in an affordable metropolitan growth suburb or in a viable regional growth center is the best way to start. For example here in regional Victoria the Latrobe valley is not a bad place to pick up decent properties with a 200k+ price tag. Closer to Melbourne the SE suburbs (Narre Warren, Pakenham etc) require about $330k+ to enter the market
You can also subscribe to Australia wide paid services that help you find cash flow performers if you don't want to do your own extensive property search.