Hi,
I have read Steve Mcnights book ‘ From 0 to 130 properties in 3.5 years’ and thought it made alot of sense to me. I like the idea of positive cashflow from properties, it sound so easy.However i have also read a book im sure many of you have also read, it called ‘ It’s easy to be a property millionaire’ From Craig Turnball. His book come from the more traditional view of negative gearing. This is what majority of investors do i think and it to sound great.
I really want to venture into property investing but im just not convinved what line to take. Also I will be buying my first home some time this year and it will be where will reside.
Can somebody give me clear Pos and Neg to these two ideas and also do i need to wait untill i buy my own home before i start to buy investments.
Any help would be appreciated,
[biggrin]
Hi WWJD,
It all sounds so easy because you haven’t actually started doing it yet. [biggrin] The concept is simple but making it happen is no picnic. Don’t let me put you off though I love property investing (but not because it’s easy).
Ultimately your goals should determine your approach to property investment eg: Do you want to build some retirement money or do you want to quit your current 9 to 5 job in a couple of years time. Obviously the approach would be very different depending on which goal you chose.
I am happy to use a negative geared property as long as it has good capital growth prospects and I get the bonus of getting tax back which I would not normally get if I did not invest. In my portfolio these properties are fairly new and cause me few hassles. Being able to claim depreciation is a big financial boost also.
I use positive Cashflow properties to bump up my servicibility with the banks so i can get more loans and I don’t care too much if they don’t appreciate in value (but it’s nice when they do). These properties tend to be older, involve a little more risk and take a bit more work.
I remember reading a report recently that said a lot of people are now opting to buy an investment property first (before their owner occupied home). It makes sense to me.
Todd Burns
http://www.freepropertyhelp.com.au
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