Great trick for better cashflow and equity gain

2 August 2021 by Ross Barnett

Great trick for better cashflow and equity gain

Do you want better cashflow?

Lots of property investors want better cashflow.  But then you start suggesting ideas and opportunities, and the response is “no”, “no I can’t do that”, “no my property isn’t suitable” or “maybe later”.

I watched Ilse Wolfe (Opes Partners Property Coach - https://www.opespartners.co.nz/property-coaching/renovations) speak to Waikato Property Investors Association a few weeks ago, and really enjoyed it. 

My key takeaway – Don’t just go with the easy answer and say, “no I can’t do that”. 

One of her favourite concepts was add a room.  I have discussed this before and often suggest the idea of adding a room, but most investors brush it off with a reason why they can’t.

·    Her thoughts were that in a main centre, adding a bedroom added on average an extra $150,000 of equity!  Are you keen on extra equity to help you borrow more in the future?

·    She showed a few cashflow examples, and the extra cashflow was fantastic.  Generally, the dollar spend is quite small, so it is also affordable for most investors

 

Action from here – Rather than saying that “can’t do it”, why not get copies of each floor plan for each of your rentals (or could even be your personal house) and try to work out how you could add another bedroom.  Or you could contact Ilse, and this is one of her favourite things to discuss.
Also consider other ways to increase cashflow

·    Review rent!  Simple and easy, and often can give great extra income!

·    Renovation

·    Convert garage to bedroom with ensuite.

·    Airbnb some of your personal house

·    Flatmates or boarders (see my past blogs about tax implications)

·    Subdivide, or minor dwelling on back


Kind regards

Ross Barnett | Property Accountant

 

Disclaimer: This article has been prepared for the purpose of providing general information, without taking into consideration any particular person's objectives, financial situation or needs. Any opinions contained in it are held by the author as at the report date and are subject to change without notice.

preview image - Is your emotional attachment to money holding you back?

Is your emotional attachment to money holding you back?

The way you attach value to money is a far more complex process than you might realise. Our brains are clever little engines, attributing different emotional values to the same amount of money, depending on how important it is to us.

31 July 2026 by Lifetime
preview image - I Googled My Financial Future. Here's What Happened

I Googled My Financial Future. Here's What Happened

Spoiler alert: According to the internet, I should already be retired, living off dividends, and renting out three Airbnbs in Queenstown.

Sounds ideal. If only it were true.

30 July 2026 by Lifetime