Hello all – I have just finished reading Steve’s book and am converted!!!
I have 4 investment properties that are NOT not cash flow positive and am going to sell them to convert to one’s that are.My question is – am I better owning my first few properties outright (then borrow against them for acquiring further properties) – or use the $$ I will have just as deposits etc and borrow on every property that I purchase?
I really appreciate the opportunity through this Forum to have your input……wish me luck!!!
J
My two cents comes through a glass of red tonight so don’t hold much value in it if you don’t like it, but I would use the money as deposits, you can buy more and the interest is deductable.[
]Cheers
Leigh K[]Read, learn, grow but most of all do it.
Hi Jonathan,
My reply probably would have sounded more interesting with a glass of red, but, I’d say nobody will ever be rich with just one or two cashflow +ve ppty’s.
This is where you have the ability to use your money and possibly buy lots of +ve ppty.
I would never own investment ppty outright. You will pay too much tax. There are more fun things to spend your money on.
Good luck,
Del
Hi Del
You were right it was interesting through a red[
].BTW you are only just behind on the number of posts[
]Cheers
Leigh K[]Read, learn, grow but most of all do it.
Jonathon,
Don’t race out and sell your properties. Maybe add some cashflow ones to balance the portfolio.
Best of luck,
Simon
Simon Macks
Mortgage Hunter
[email protected]
0425 228 985Hi,
I think Mortgage Hunter has a good point. Depending on the equity you have available AFTER selling costs for each of your IP’s vs their short to medium term capital growth potential (ie in an area just taking off, you’re about to renovate etc) I’d only sell enough to get you started into +ve cash flow and see how you go from there. Overall I am a BIG fan of cashflow +ve but also in minimising unnecessary costs eg those incurred in selling if you can get ahead through just partial selling, reducing other mortgages to turn into +ve and have enough for several 20% deposits to hit the road with looking for the illusive earners.
Accountants and brokers are handy to involve in this process too.
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Mel
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