Hi I’m Pammy,I have just joined, Good to be hear.
I have two investment properties, and I don’t own my own home. I rent and my rent
is very cheap $70.00 a week. So I stay put.
My home loans are P.I. and I owe around
$500,000.00. The two properties combined are
worth 750,000.00. So I only have about $250,000.00 equity. The rent I receive is
only 24,700.00 p.a and my loan payments are
around $37,248.00. So as you can see I’m pretty heavly geared at around $12,548.00 a year I add to the loan.
Do you think I should maybe make the loans I.O. or keep it the same. Also with such a big negitivly geared loan, would this
reck my chances to maybe buy another property soon.
Does any one have any comment on should I
maybe sell one property and buy something
cheaper and try and positivly gear it,
Thanks Pammy [
]Hi Pammy,
Last post for the night.
Welcome to the forum!
My thoughts are that if all you did was make money, then you’d have to make money!
The problem with -ve gearing is that it forces you to stay in your job to earn enough money to fund the -ve cashflow and also create income to soak up the tax losses.
Here are four possible options:
1. Pay off your loans to make them +ve cashflow
2. Redraw your equity and invest it in +ve cashflow property to balance out the -ve
3. Sell your property, pay out your loans and use the balance (after tax) to buy +ve cashflow property
4. Do nothing… keep the status quo.Have a wonderful weekend and thanks for your post.
Bye,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Thanks Steve, some good advice, I’m was thinking of trying to buy a property with
positive cash flow to balance the sums.
Any suggestion where. Pammy[:X]Hi,
It’s not a matter of where, rather it is a matter of how!
Find problems and then match them with the appropriate real estate investing solution.
For example, you can wrap any value property – but the real art is finding a client that wants the property and can afford the repayments.
The problem solving here is finding the client, not the property. Hopefully this illustrates the point that it’s not really a matter of location.
This theme… problem solving to make money in property, is the central theme of the Property Masters seminar.
Bye,
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
]
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