Hi all….I have searched high and low on the internet for properties that offer good returns but I have found many properties around the $200K mark that only offer 6-7% returns, these kind of properties would not be able to be positvely geared, i guess (altho im not completely sure!), am i doing something wrong?
Is the current state of the market to blame for this flat period? Coming off the boom of last year, it does not seem as though the market has depreciated all that much of late?
Hi, Sweet,
I saw your thread and thought I would offer my 2 cents worth of comment.
As Steve told us in the past that the days to find positive cash flow properties are long gone. In fact, Steve admitted that his 11 seconds solution formula is no longer applicable in the current property market condition.
What we really need to do is to look for property that offers you the opportunity to solve the problem in order to make profit. That is ‘Problem + Solution = Profit”. We cannot buy profit nowadays so we need to think outside the square and create profits by solving problems.
I hope the above clarifies the issue.
Regards
Raymondso does that mean it is impossible to find properties that deliver positive cashflow in todays market? therefore, is it necessary to negatively gear our investments?
as luck would have it, today i just finished reading chapter 16 of steves second book and learned the valuable saying “Problem + Solution = Profit” as choir just told me….learning everyday
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