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In the current market I’m a little worried about borrowing 100% unless it’s an increadabily good deal.
However, the other option you mention is what I’d like to explore: anybody with experience in this? Do you mean 20% ownership for moneypartner with a 20% cash deposit? What about 20% ownership but 50-80% of profits from capital gains (with a clause not to sell for 5-7 years or at a loss) while getting 20% of positive (or negative) cashflow. Would that make you intersted? Anybody?
Hi Audrey
It’s good to read about other peoples “mistakes”. Mostly it’s only success stories that are told…
I’m in a similar situation – I recently bought a brand new negatively geared property on the outskirts of Brisbane on 100% finance before I read any of Steve’s books.
From reading these books I’ve learnt a lot about what to look for and how to evaluate possible investment properties. Also the books once and for all punctured the hype of negative gearing.
But the new information also made me feel quite badly regarding my existing investment property, like I’d just made the biggest mistake ever.
I’ve naturally re-run the numbers from my property and wouldn’t have bought it again knowing what I now know.
However I’ve decided to hold as the property is in an area that is easy to rent out. I expect a reasonable growth over 10 years plus I also think rent is to increase quite a lot in Brisbane over the next 5 years (but not enough to turn this into a positive cash flow). My net loss per month is 500 AUD after tax refunds.
Call it speculation, but I’m at this stage not willing to sell and realise a larger loss and losing out on a long term capital gain over next 10 years. At least I hope I’m right….?????? If I at any stage can sell for more or less no loss I will sell straight away (no emotional ties).
Be sure I will not buy another heavily negatively geared property. I have Steves books to thank for that important eye-opener.
Best Regards, Rune
