If you are on a high income then surely negative gearing is the best tool for minimising your income tax.
On a low income then the best way to build a portfolio is PG.
What are everybodies opinions on these comments?
Also how do you choose which forum your quetions appear in?
DarrenIf you invest to minimise tax then I agree.
However if, like most successful investors, you invest to build wealth then it isn’t quite as clear cut as that.
As far as choosing forums I just go by the title, seems to work in most cases. If you can’t place it then I guess general is the answer.
All the best,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 9853 year fixed rate – 6.69%
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I expected a bit more fire from the forum as it seems that the majority of you have built your strategy around positive cash flow.
I am not saying that either is better as I believe that it depends on your end goals as to which strategy works for you.
What I would like is solid argument about why you have chosen a particular startegy and how it has worked for you.
Surely every strategy is based on building wealth.
Convince me!!!!!!I invest for capital growth.
Thats it.
I go for a property that will increase strongly in value. If it is pos geared then that is gravy to me. Neg geared is Ok too if the potential justifies the weekly commitment.
That works for me however, I would never suggest any other person is wrong because they use a different strategy.
Perhaps this is why you aren’t getting a heated debate – most people respect other’s strategies as being rightfor them.
All the best,
Simon Macks
Mortgage Broker
http://www.mortgagehunter.com.au
0425 228 9853 year fixed rate – 6.69%
Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
I heard a very experienced (and wealthy!) property investor say recently that it’s all about getting a level of return.
For example, you might want a return of 15%. On some properties that may be 11% yield and 4% capital growth, on others it may be 12% growth and 3% yield. These figures are worked out over a period of say 5 years.
At different points in your investment journey, different properties will be right for you, depending on what you already own, your borrowing capacity and serviceability, etc etc.
It’s all about balance!Keep smiling
Felicity
ALthough most rich people earn a high income they are chained to their job.
The main reason why people want CF+ is because they don’t want to work (or at least have some control over their work, as usually it’s the other way).
Negative gearing counters this and makes people more dependant on a high paying job.Also it’s hard to live on negative gearing when you retire (if you saw Steve’s free book launch speech you would know why).
Lastly after you buy a property if you have the right systems, property management can be reduced to a large extent so it takes less of your time (see Steve’s free book launch speech – doing more with less).
Also I might add that most people who negative gear don’t know when the property will turn into a CF+ property. Usually the aim is to sell it off, but there they usually incur high CGT.
As the saying goes- when the Doctors are buying get ready to sell, and when the Busboys are trading tips – Sell!Rgds.
Lucifer_auOriginally posted by Lucifer_au:Also it’s hard to live on negative gearing when you retire (if you saw Steve’s free book launch speech you would know why).
Hi Lucifer,
But it is possible to live on equity achieved through sustained capital growth.
I recommend anyone who doesn’t believe this attend a Steve Navra seminar http://www.navra.com.au or wwwnavrainvest.com.au for a different view.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
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