LOL where I work Im surrounded by posters of women in skimpy lingerie and guys in skimpier Gstrings….not to mention a few smaller ones of people doing……..what people do naturally. LOL
As a real Estate investor time is always right. It is just a matter of thinking outside the box and being creative(ie not like 95% of people).
Rents are not increasing fast enough? Either look elsewhere or CREATE a situation that will increase them. This is where Wraps and lease options will give you an edge.
Upon reading your post, I was quickly coming to Steve’s defense. However, you have provided a balanced and honest summary of your experience from that offered.
I have sensed here before a feeling of some people missing the point of Steve’s book. Hey, he’s a businessman. The book is another stream of income for him. As he says, he’s just telling a story about what he did and fortunately continues to do, as a result of his proactive method.
Sure his timing was fortunate, and had we all bought 3-5 years ago we all would be millionaires through capital appreciation in addition to the positive cash flow flavour this season. Then again, we might all be paupers, if everyone did this, then who would be making the money? Something else will surface next season. I might even join the band wagon with you then.
I also believe that +ve cash flow props are becoming more scarce in Aus. That’s why people here discuss NZ so much.
Yep, -ve props do work for some. If you are still working, invested for growth, then you can still use equity to +ve gear as you reach your chosen retirement.
I’m glad to hear you say that the concept has made you think, as it has I. I am currently looking at +ve cash flow alternatives which are double that of residential property investment.
Risk equals return .. it depends on your circumstance and aims.
Stuart has given you the straight forward answer. It depends how you look at it. Hedging your bet, or cancelling the other out. How might this affect the flexibility of your loan if fixed?
ANZ are offering 10 year fixed at a bit over 7%. What does that tell you? Slow growth as dictated by the govt. via the Reserve Bank.
I’m no expert, but I’m sticking with market rates.
You’ve been reading that good looking sheila’s book haven’t you?
Thanks for the summary though, as I was still trying to wrap my head around the difference. I now understand that the paper (or geared) positive is preferred to the extra injection of cash. Extra cash will reduce the outgoing commitment, but I believe that this must be balanced with the cash-on-cash-return as Steve purports.
I still feel that Miss Lomas relies heavily on depreciable assets in her approach. Does her approach restrict investment apart from the fact that purchased property need be less than 15 years old?
Have I finally grasped the concept? I’d be keen to hear your further thoughts.
Andrew D, you are welcome to give me a call should we still be at Olim’s after you finish work. Please feel free to e-mail me at …. for an exchange of mobile numbers if you wish.
Andy, yeah mate I know, Duck’s Disease .. my ar*e is too close too the ground. We must look like Danny Devito and Arnold Schwazeneger in “Twins”. When I get together with my brothers, you’d swear it was a Jockey’s convention.