Simon Abbott, block of units and investor sale strategist, unpacks what makes a block “truly” positive cashflow in 2026.
1. Net Yield After All Outgoings
Gross rent isn’t enough—investors scrutinise net return after strata levies, rates, insurance, and management fees. Simon advises owners to present clear breakdowns of real holding costs and rental income history to attract the smartest capital.
2. Interest Rate Sensitivity
With variable rates still well above the 2020s, sophisticated buyers stress-test deals; blocks need to stack up at 1–2% buffer over current mortgage rates to be cashflow-positive.
3. Value-Add or Passive? Investor Types
Some hunt “under-rented” blocks as value add plays; others want passive income and stable tenancies. Simon matches blocks to buyer types from his network for the right fit.
4. Off-Market Stays King
Positive cashflow blocks transact faster off-market through buyer networks—qualified, ready capital and minimal disruption for tenants/contracts.
5. Buyer Scenario
Simon’s client in Bendigo secured a block with net yield over 6%, minimal vacancy, and low levies—beating a metro competitor’s “headline” yield which failed to account for $8k/year in body corp and council costs.
Conclusion
Need help presenting or sourcing real positive-cashflow blocks? Simon Abbott’s database and evaluation are open for qualified buyers and block owners.
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