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  • Profile photo of erwanjgerwanjg
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    @erwanjg
    Join Date: 2005
    Post Count: 4
    August 21, 2005 - 5:12 am

    Why everyone is against negative gearing property? A property is still an investment and I am willing to paid a little bit out of my pocket every week to still have a capital gain that will cover what I paid anyway

    Profile photo of erwanjgerwanjg
    Member
    @erwanjg
    Join Date: 2005
    Post Count: 4
    May 8, 2005 - 6:14 am

    I think firstly you should ask the real estate what is the yield % (gross or rent return). After you compare it with the formula Purchase Price=annual rent/yield %.

    the yield is due to the market.

    So if yield > 6.57% (actual in your case, then the market price should be less than what is asked. If yield < 6.57% then the price should be more so what is asked is underevaluated.

    Regards,
    ErwanJG

    Profile photo of erwanjgerwanjg
    Member
    @erwanjg
    Join Date: 2005
    Post Count: 4
    May 8, 2005 - 5:59 am

    Firstly I suggest you to read the second book of Phil. You will discover than the goal is not to find a positive cashflow property (which is really hard in this moment everywhere in Australia) but find a “problem” and sell a solution to make a profit.
    I am not saying that such properties do not exist anymore but maybe you should write down a investment strategy in this market context.

    Regards,
    ErwanJG

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