Keep some powder dry for great buying opportunites which will present themselves over next couple of years.

If you had 10 as a long term goal, the quicker you get to 5 isn’t necessarily going to be the quickest way to get to 10.

Hi Richard,

That is probably best for him to answer in terms of what he sells and why. I know that as a buyers agent he also looks for established property for purchasers.

I know that our mutual client has achieved equity growth since purchase in 2014 and settlement last year. Which vindicates the purchase price. I suppose if seller is confident of getting a good yield anyway, then guaranteeing it is not much to sacrifice. Many of the early sales can be at a good price to get volumes up and then re-assess the final sales.

Anyhow, if someone was to speak with him and not like the answers to such questions or more, that would be up to them.

Cheers

Jason

dana_c_83 wrote:

And would you recommend they be negatively or positively geared?

This will depend on many factors, but as a positively geared property is making you money instead of losing it, it is often the best way.

The concept can be misunderstood, it is essentially a tool which retrieves some of an investment loss. Not something which should be a goal from the outset.

It seems as though you have good equity but servicing may be more of an issue. In which case it would be a good strategy to search for a property with a good yield either cash flow positive, or near enough. This will underwrite capital growth in any event, and also assist you with further purchase options. Someone on the highest income bracket and not much equity, seeking an investment property would look at it differently. Something with anticipated strong capital growth potential, but not necessarily good rental return may be more appropriate. Even then less tax is only paid because less money is earned, so not a good thing in itself.

The key thing will be structuring your loans correctly, taking into account tax implications and flexible options moving forward.