Cash flow positive and negative relate to whether the income generated from a property exceeds its expenses, or vice versa. This is particularly relevant for investment properties, but understanding the concept is useful for all homeowners considering selling.
As of December 2025, in Melbourne’s Eastern Suburbs, a ‘cash flow positive’ property generates more rental income than ongoing costs like mortgage repayments, rates, insurance, and maintenance. Conversely, ‘cash flow negative’ means expenses exceed income. Currently in Melbourne, many properties – particularly those recently purchased – operate with negative cash flow, relying on capital growth to provide a return. When preparing to sell, understanding your property’s historical cash flow can inform your pricing strategy. For example, a consistently cash flow positive property may attract investors, while a property with renovation potential might favour families. In 2026, buyers continue to carefully assess potential rental yields alongside capital growth prospects. Fletchers’ comprehensive property appraisals consider these factors, providing a realistic market valuation based on current buyer demand. Typical preparation costs in the Eastern Suburbs, such as styling ($2,000-$8,000) and professional photography ($500-$1,500), should also be factored into your overall financial considerations when selling.
Ultimately, cash flow is a key indicator of a property’s financial performance, influencing both buyer interest and potential sale price.