I start a new topic as I don’t want to get into the argument, I like to LEARN more from experience people, & hopefully one day I will be able to share it back with new people.
Quote from Steve: However it’s important to remember that I invest for cashflow and not capital gains.
For me, I reinvest a large percent of our +ve cashflow to reducing debt. This has two effects:
1. As debt falls, positive cashflow increases; and
2. As debt falls, impacts of higher interest rates diminish.All we can do is wait and see whether the Steve McKnight way stands the test of time. I’m confident it will.
I like to have that confident too, please explain a bit more. I just can’t see it yet, it sounds “to good to be true”.
I just recently bought a -ve geared property (my 1st IP), I definetely bought it for Capital Gain ie buy & hold, waiting for the price go up. That is the only way I can see/understand at the moment.
Is it possible to apply the +ve method/strategy in Sydney where the price is high, and rental return is low?
Hi Matduqua
I
just recently bought a -ve geared property (my 1st IP), I definetely bought it for Capital Gain ie buy & hold, waiting for the price go up. That is the only way I can see/understand at the moment.
At the moment the property is costing you money reason is expenses are more than income.That is -ve. Should you structure the deal that income exceeds expenses that is +ve.
When its -ve you are losing on the day,(unless the loss is a book loss ie depreciation), when its +ve you are making on the day. Take your pick.Hope its a help
Cheers Rob
“A bank is a place where where they lend you an umbrella in fair weather and ask for it back when it begins to rain
Hi Matduqua
“Get Lateral” in your thinking and there are options even in a hot market.
eg: just say the Vendor of your next IP owns it outright and is retired. You offer to purchase with 80% of the bank’s money and ask them to lave 20% on the table which you will pay back at X% rate over Y years. It works for them as it is like having a term deposit on which they get interest.
It reduces your entrance costs and may make the deal cash positive. Note the use of the word may. Do your numbers !!
cheerio
the Bruce[
]Thankyou.
I will give it a try.
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