Forum Replies Created
It takes time, it is not a get rich quick scheme, we need patience with investment properties. Let them grow in equity and you can then draw down from them, via a line of credit. The debt you have is then good debt as the property you have should grow in capital if you have bought in the right locations.
A lot of people retire after buying loads of investment properties, it can be done even if you stop working as the income from rentals should be able to pay for the property as well as your draw down amount.
Hi there,
I always believe that we are better off going for multiple sources of income. The more we diversify the better and avoid putting everything into one basket. Not just in shares, unit trusts, managed funds, investment properties but also in commercial properties, cash deposits, bonds or even setting up an ebay store to get some income (caution, fraught with danger!!). It all depends on your risk profile, if you have a low risk profile, go in any venture very, very cautiously. Lots of spruikers out there especially in the internet webstore world. Unfortunately there is no short cut to wealth, it takes time, you need to do lots of trial and error and wealth often comes with hard slog, unless you are surrounded by expensive advisers !
The only way to juggle all of them is to educate yourself as much as possible, and to get into the deep end and learn by doing it. True, negative gearing can put you in an ever decreasing circle of losses, but it is fantastic for its tax effectiveness, its high gearing ability and for capital growth. I like it because it helps me move my income from being lazy into working hard for me. But negative gearing is not an income stream. If you want an example of a stream of income, visit the ASX website and accumulate knowledge on shares / warrants / options without paying a cent.
All in all, it is a juggling game of managing money, and the fun is in finding out how to move them around the ferris wheel led by the economy, which is largely out of the control of small players like us.
warm regards
crouching tiger [thumbsupanim]
