Hi All.
After reading Steve’s book and observing from the sidelines of the forums here i’m now in the process of selling 4 of my neg: geared props. My aim is to now go buy numerouis pos: geared ones. I’m in Perth and would like to continue to invest here but am thinking i’ll need to go outer metro – to smaller country towns.Is any-one here in a similar situation or have you done it already….any advise.
Thanks in advanceRegards
Bernard
Whoa, hold on a moment. Before you go selling your negative geared properties, have a look at what they have become. If you have achieved good capital gains out of them and you can afford to keep them – YOU MIGHT NOT HAVE TO SELL THEM. You can use the equity in them to purchase +ve cash flow properties.
I am not alone on these forums advocating a mixed portfolio. In fact I would even guess that over half of the serious investors here would say don’t sell them without looking at the bigger picture.
My wife and I have one -ve geared prop, 1 cash flow neutral prop and about to have our first +ve CF prop. Yes +ve CF seems to be all the rage at the moment, but they are becoming harder to find (even in WA).
I am not saying don’t sell them, maybe you can sell 1 or 2 of the underperforming ones, but I think a diverse portfolio is the way to go at the moment.
Good luck
‘Eat rich food, barbeque a yuppie’
agreed!
you need to look at the whole picture, maybe your neg properties actually work for you in a different way. I too have a balance on that.I use shares, neg geared property and positive property, then i work also on super. I am looking for tax advantages, though at times the effort is considerable and my accountant hates me [8]
It isnt what everyone else is doing that counts, it is about you and your situation and your goals.
Elves
Hey Elves,
Why does your accountant hate you?
I am not finding joy in the accouting world myself right now!!! All the ones I talk to seem so focused on negative gearing. Bloody accountants (sorry to all those good accountants out there)!Rachel.
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