A positive cash flow property is one where the rental income exceeds all costs of ownership including mortgage repayments, property management fees, council rates, insurance, maintenance and vacancy allowances. The property earns more than it costs to hold every month.
Positive Cash Flow vs Negative Gearing — Key Differences
| Factor | Positive Cash Flow | Negative Gearing |
|---|---|---|
| Monthly cash position | Surplus income | Out-of-pocket shortfall |
| Tax treatment | Taxable income | Tax deduction on loss |
| Typical yield | 5.5% gross or above | 2.5 to 4% gross |
| Capital growth profile | Lower typically | Higher typically |
| Borrowing impact | Improves serviceability | Reduces serviceability |
| Suits investor type | SMSF, retiree, cashflow-focused | High income earner, growth-focused |
Where to Find Positive Cash Flow Properties in Australia (2026)
True positive cash flow after all costs in 2026 typically requires a gross yield of 5.5% or above. GeeVee’s top markets for positive cash flow are:
- Dandenong VIC — Units 5.8 to 6.4% gross, strong tenant demand, affordable entry
- Liverpool NSW — Units 5.8 to 6.5% gross, Southwest Metro 2030 catalyst
- Ipswich QLD — Houses 5.4 to 6.2% gross, Queensland’s strongest cash flow market
- Toowoomba QLD — Houses 5.9 to 6.8% gross, best regional cash flow nationally
- Rockingham WA — Units 6.1 to 7.2% gross, Perth’s highest yielding coastal suburb
- Campbelltown NSW — Units 5.5 to 6.2% gross, Southwest Metro station confirmed
Frequently Asked Questions
Is positive cash flow property always better than negative gearing?
Not necessarily. For high income earners in the 45% tax bracket, the tax deduction from a negatively geared growth property can outperform the cash surplus from a positive cash flow property when total returns are compared over 10 years. The right answer depends on your tax position and strategy.
Can I achieve positive cash flow in Melbourne?
In most inner Melbourne suburbs, no. At current prices and interest rates, even units yielding 5.1% in Preston will still require a small monthly top-up after all costs. Genuine positive cash flow requires outer Melbourne, regional Victoria or interstate markets at current rate levels.
Where can I access positive cash flow properties off-market?
The Collings portal includes high-yield off-market listings across VIC, NSW and QLD including blocks of units that generate 6 to 8% gross yields from a single purchase. Sign up free at collings.com.au/portal.
Find Positive Cash Flow Properties
Whether you’re buying your first investment property, building a portfolio, or exploring SMSF property investment, the Collings Property Platform gives you access to off-market opportunities, portfolio tracking, investment tools, and property insights powered by GeeVee AI. Join free today and start building your property future. collings.com.au/portal
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