Hi all,
I’m a new subscriber and have found the service and information extremely valuable.
Last September (2002) I purchased an Investment Property which is negatively geared. The purchase was off the plan. I’m extremely happy with the product but have concerns as to whether negative gearing is what I should have done. Both my accountant and financial adviser indicated that it is a good investment, yet losing money to claim tax deductions now doesn’t seem such a clever thing to do! The intent of the investment was both for long term capital growth and positive cash flow.
My current situation is that I’m living at home, recently engaged and want to purchase a home for myself and partner to live in. The purchase price of the current investment apartment (2 bedroom in East Bentleigh VIC) was $365k. I put 20% plus paid for all fees etc. I have $220k interest only fixed for 5 years at 6.99% and $80k P&I variable currently at 5.97% and I contirbute an extra $100 per month on the P&I repayment. My monthly rent averages $995 after agent fees, body corporate fees, utilities etc are deducted. I’m on the highest tax bracket.
Does this seems like a wise investment? How can I make this investment a positive cash flow investment? My long term plan is to generate pasisve income from various investments, not just property?
Any responses would be appreciated.
Martin.[
]Hey Martin,
Welcome to the site. The ways to turn this investment that spring to mind are
1. Wrapping it to get better cashflow.
2. Accessing the equity in the property to buy other properties that suit your investment goals.By the way What are your short, medium and long term goals ? Where do you want to be in the future. Think about this and write down your answers and review it constantly.
Hope this helps.
Enjoy
AD [:0)]
(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert EinsteinThanks for your response.
I’ll need to do further investing of the Wrap technique and determine how this process works.
I also plan to use the equity built in the existing property to fund further investments.
I suppose like most people my goals are to build wealth and passive income so I can be financially independent and not rely on a job for income.
Although I have written my short, medium and long term goals down, the hard part I find is getting the correct information. There are so many dishonest people out there that it’s sometimes difficult to filter the good from the bad.
I certainly plan on using this forum as a source of valuable information and research.
Martin.
Hey Martin,
Welcome to the site. The ways to turn this investment that spring to mind are
1. Wrapping it to get better cashflow.
2. Accessing the equity in the property to buy other properties that suit your investment goals.By the way What are your short, medium and long term goals ? Where do you want to be in the future. Think about this and write down your answers and review it constantly.
Hope this helps.
Enjoy
AD [:0)]
(Andrew)“”Imagination is more important than knowledge. Knowledge is limited. Imagination encircles the world.”
Albert Einstein
]
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