FredG replied to the topic Positive or Negative? in the forum General Property 11 years, 8 months ago
Positive Geared
You are assuming that you will be able to buy/find a positive cash flow property every month for 15 years. That's 30 properties.
Negative geared
You are only assuming to buy 2 properties and stay like that for 15 years. Those properties will triple in value over 15 years. That equity will allow you to borrow to buy more…[Read more]
FredG replied to the topic Positive or Negative? in the forum General Property 11 years, 8 months ago
Hi Jotham
I am a high income earner like you. Let me explain my investment strategy/methodology. I invest in property because I like to have control of my investment. Both property and shares are mostly the same (both grow in value and both provide you with income (rent from property and dividends from shares) but they both have 3 important…[Read more]
FredG replied to the topic Positive or Negative? in the forum General Property 11 years, 8 months ago
Hi Jacqui
You're completely right. It was just a simplified example.
I forgot to mention depreciation which will increase your tax loss without affecting your cashflow.
In my case it leaves me with $1000-$2000 out of pocket for each of my negatively geared properties. Which I have no problem paying to own these properties.
FredG replied to the topic Positive or Negative? in the forum General Property 11 years, 8 months ago
If you currently have a high income and are paying a lot of tax then you should buy a property with capital growth (which most likely will be negatively geared).
What this means is that you will pay more interest on your loan than the rental income you will get from your property. The shortfall you will be able to claim back from your tax. This…[Read more]
FredG replied to the topic What research tools do you use? in the forum General Property 11 years, 8 months ago
Hi Paul where did you find the magazine for $9 for 3 months? When I checked it was $40 for 6 months (6 magazines).
FredG replied to the topic What research tools do you use? in the forum General Property 11 years, 9 months ago
Thanks Shahin. Are there any other tools you use that don't offer the same info that house.ksou.cn offers?
FredG replied to the topic What research tools do you use? in the forum General Property 11 years, 9 months ago
Are there any useful apps out there that you guys use? Or is it better to stick with the computer?