Hi,
Just letting you know that we have made some minor modifications (including a new graph!) to the negative gearing article outlined on this site.
Check out the latest at:
https://www.propertyinvesting.com/strategies/negativegearing
Bye,
Steve McKnight
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Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Hi Steve,
Checked out graph. It’s great and I like the colours.
Cheers
Sooshie [
]There are no problems, only solutions
Great article Steve. I didn’t come across it until today. Very informative and helped me create a few additional distinctions about -ve geared property. The whole notion of paper / unrealised gains is a big issue. Having reviewed my investment and lifestyle goals over the last 6 months I have come to the conclusion that I need to focus on accumulating the cash not just the equity. In fact I’d say that in prioty order I’d prefer the cash, while at the very least maintaining the equity position of the investment.
Cash is king in the sense that it can fund your lifestyle, help with debt capacity and serviceability, and allow you to increase your property holdings to…generate more cash. I guess in treating property investment more like a business in terms of outcomes needed to survive / stay in the game, one thing I would need to concentrate on is building my cash flow not just the equity base.
Thanks again. I love the learning
Gus
Hey Steve!
Nice article! I especially loved the clarity of the “guaranteed losses versus potential capital gains part”. I wonder how many “investors” today honestly believe that a property market is *ever* capable of a correction?
Quasimodo [^]
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It seems to me that action has a most magic way of answering all the questions our fearful mind tries to throw before us…
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