Evening all,

Well…..first of all, quiet a big response to this now swinging debate. Before i try and answer a few replies i wish to make my thoughts clear…
I myself, currently own +ive cash houses in both regional and deep rural sectors. They, in the past few years have paved the way as a great income-stream tool. Like you all i just have my opinions.

I guess the my main argument is too be careful and not get sucked into the +ive cashflow environment due to something you have read and heard. I know i have harped on Steves book a little now, but i think its important that people are not driven to a fairytale that is now already 4yrs old. Houses in ballarat and bendigo are now 170+ not 60-80 like they were 3 yrs ago. Places like Nhill cannot be put in the same catergory as these, they are 6hrs away from the city and dying not appreciating in capital (TheENJOYlady ask the agents and ABS about the declining population).

Richmond if you dont think rentals are decling you must have been asleep for a couple of years. The new home buyers grant and property boom has paved the way,for once tenants to now be owners. you need only look at the Stamp duty revenues. However as rates rise lets hope more people rent….or will they just stay in there own home?? If you need stats go to your nearest agent and ask him how rentals are this month or even visit the ABS site…

As for wraps, yes i believe they are a good tool for the eldery but not for the young. They only stream income for a certain time span – and when thats gone so is your house – no future wealth there!!!

Capital, i believe is the main success to wealth. having said that, i dont drain myself in -ive gearing loans. Negative gearing in a lightly mannar, will far outway +ive gearing over a decade. if you dont believe so, go to a book store and see how many people have made it rich through positive gearing – the number is far from that who have bought for capital gain. Steve got in the market at the perfect time for the +ive gearing caper……now is not! People who strive to be like him in todays future should stop and think…the market has changed, his four year old storey doesnt compare with todays….
Be smart people and invest with caution (not 6hrs from cbd) wealth comes in time not positive cashflow houses or wraps that cease to exist in future years….

Just my thoughts on the +ve cashflow debate

Guys,

It doesnt matter how many books you read, the basic facts are simple. you dont have to be Einstein to realise people will suffer. Before people know it, interest rates will rise and positive cashflow houses will become negatively geared. This will lead to people trying to sell thier rural houses, and to no prevail. Tell me, whos going to buy a house 5-6 hrs away from the city when houses will be falling in the CDB??And i havnt even mentioned capital growth – thats if there is any, rural towns are left behind when its comes to capital growth…
Sometimes ROI isnt what its all about. Success comes through consistant and stable planning – something +ive housing isnt…..
Goodluck to Steve, he has done extremely well for himself in an innovative time, the right time 3yrs ago. Lets see how positively geared his houses are in 2-3yrs when interest rates rise in excess of 10%…..i beg to wonder.