Hi Guys
I have started reading the book 0-130 Properties in 3.5 Year, and so far it is great. Iam however a little confused at this stage and would love some help and clarification if possible.
Firstly the 11 second rule, this seems like a good idea in but I just cannot seem to find any properties that will fit into this category here in Perth, there are however some in the regional areas such as Bunbury, Busselton etc, now is this the best way to start, by buying in these sorts of areas?? They do have a good growth rate!!
Second I have been discussing with a few people about investing and getting a positive cashflow from the beginning and they feel this is the wrong way to go, they have all said that negative gearing is the way to go. Is this true??
Thanks for any help
Hi Rolonation,
To each of us and in our own opinions, some of us will vote in different ways to gear property. But from my experience, Positive geared properties have little capital gain or capital growth, as compared to negative geared properties that have been able to appreciate almost over night. Yet the advantage of +ve geared property is that, the property will look after it self and will not hit your pocket hard or at all.
To be honest, i think a good property portfolio must have some diversity, like some:
positive geared
negative geared
passively geared
neutrally gearedjust a mix or balance, but its up to you, i know most people prefer just +ve geared, but its up to you at the end of the day.
cheers
s.i.sSave on a regular basis
“People forget that by saving just $3 per day and investing it sensibly over a working life, you’ll end up with around $1 million.”
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