Hi all,
I have had some great advice from the regulars on this forum so I thought I would float this question.
I have borrowing capacity of around $1 million.
I would like some suggestions on how to put it to best use.
My main concern is that if I purchase negative geared properties to this value, the 'negative' cash flow sinks me.
I have some free cashflow ($200-$300 per week).
I have looked at stand alone properties in 'boom' areas, development and even a little commercial.
I don't necessarily want to max out my borrowing capacity but I want to utilise my equity.
Appreciate your feedback.
As the Brisbane market is seeming like it is going to grow the most, I would suggest starting from there.
If it was me, I would be taking on a few reno projects to turn them into pos cash flow, maybe purchase a small block of units to reno to sell. I dont know enough about the commercial market, but I am sure there would be some great options there with some of the growing suburbs in Brisbane with large retail areas. Check which centro shopping centres are being developed at the moment?Hi, this is someone else's idea but i will forward it.
If you have some good negative geared properties for around $350k with good CG, then buy 2 of them, work out how much money they will be taking out of your pocket, and get a small line of credit that will cover the loss for 3-4 years. By doing this your CG wll out ran your losses by a fair bit. eg. you have a loss of about $15k per property per year, but they rise in value by at least 8% per year (average returns) you will still come out in front.
Try your own sums but it will work out in every area besides a flat line market.
king
That is a very interesting question. in my opinion and in ONLY my opinion use it. it really is a very simple process. does the income from your investments (i assume you are going to take the money from your lender?) cover ALL outgoings. if it does take it
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