If you are rich, or can afford to quit your job and spent time travel around and use microscope to find +ve cf ppty, the topic is not for you.
To me, it is impossible to find any +ve cf real estate ppty in Sydney where i live. and I didn’t think I can quit my job and move/travel to WA, SA or Hob to find a ppty fit 11 seconds rule. But I find there are plenty +ve cf ppty outside of the square of R/E ppty – Share (another kind of ppty).
If you can spent same time of research on R/E ppty on researching for shares which provide >6% pa f/franked div and good earning growth history. you can find plenty of them out there, Potential CG even great.
I am doing it now, so far I have achieved >20% growth in 4 months. When I have earned enough money to pay the deposit and I will start to buy my first IP with high CG growth but -ve cf which can be fund by Rent, wages and dividends.
There may be plenty other ppty there can provide you +ve cf, eg: taxi plate.
Anyone has the same thoughts ?
Jason
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]Hmmmm… Yes well erm That kind of property is great when and if your growing.. A number of big risky point outs…
1. The bank won’t lend you up to 110% of the value of the shares that you want to buy. y?? too Risky.
2. If the company that you “own” falters then you can loose money fast on paper.. But then you can realise that loss alot quicker too when you sell. Property on the other hand allows you to get another tenant in when the current ones “falter”.
3. You can take out insurance to protect you shares? for the whole loss ??… That’s if you hedge, I don’t think so. Property, you can insure for total loss and you can also put hedges around it of you want to. You can even get landlord insurance.
4. Even the big companies can and do crumble. So do bricks and mortar if you don’t look after it.
5. There are alot more tax incentives for owning property than owning shares..
6. How much a year are you making from fully franked dividends? Do you get paid the dividends yearly, 6monthly, mnthly, weekly???
I get my positive cash flow from all of my “Shares/Prpty) weekly.anyway food for thought… And yes I know there are successful Shares investors/Trader..
To clarify, are you and investor or a trader???????
Cheers
Calron the Alcamist
Turning things into gold is fun.
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