hi everyone
great forum and i think steve should be commended for starting up such an arena for input and honest expression without a fee attached.
there seems to be many views on negative gearing/positive cashflow/wraps and i sometimes wonder which is the correct strategy.
negative gearing is usaully targeted to more blue chip type property.
positive cashflow is usually targeted to a lesser expectation of capital growth.
wraps will give you cahflow but lose the freeehold and growth at the end of the term provided everything is ok.
how about a negative geared property with a positve cashflow?
regards
alf
Hi Alf,
Thanks for your feedback.
You write:
quote:
how about a negative geared property with a positve cashflow?With respect, isn’t this an oxymoron, like ‘finding an honest policitian’ or ‘male intellect (so my wife implies [
])’?Really, the ‘negative’ in ‘negative gearing’ implies a loss or outflow. In most cases this is cash – or at a minimum depreciation savings to offset other taxible income.
With respect to the depreciation, it is possibile to have some cashflow up to the point when all your tax liability is wiped out. But if you want to replace your salary with passive income, then -vely geared property is not a strategy I’d suggest trying.
Regards,
Steve McKnight
Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
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