Hi all.
l have 2 negative geared props.own my own home.have $380,000 finance currently available to me and $50,000 in cash.should l pay down the negative props to bring them to positive cash flow or let them ride and just start investing in cash flow props.the negative props are not costing much at all and l purchased them prior to the boom and they have increased in value a great deal.
really apreciate any feed back here
cheers lynnemWhat are you trying to do? If it is to replace your income with passive income the negative geared properties are working against you.
It comes down to your goals, are you wanting to stop working and live off you I.P’s? If so then you need to be holding +ve cashflow places.
Paying off the loan to make them positive is one way to go. Do the math, what would the return by investing the money into the -ve geared places versus using the equity/cash to buy +ve geared places.
Its simply a matter of getting the best Cash on Cash return you can.
Pete
…Beware of the dreamtakers…
Hi,
Would you like to keep these properties that are negative geared for the long term? If not why don’t you try and wrap them, to obtain positive cashflow. If this works it will help leverage you to a more positively geared venture.
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