After reading Steve’s second book and having a lot of unanswered questions, I recently purchased his first book and am finding it amazing reading. My husband and I have been investing through negative gearing (yes, I know, what duds) and have now hit the threshhold where we cannot afford to pay the gap for any more properties. We have 5 investment properties plus our residential home. We now have 3 on the market and are looking forward to becoming POSITITIVE. I must admit, I was dubious about finding properties that would actually provide an income, but after less than 1 hour on the internet, I was pleasantly surprised. I found several properties that fit the 11 second rule easily.
We are not ready to take the plunge until our first property settles but I am going to put this time to use researching and gaining more of an insight into this wonderful new way to invest.
KayleenGood luck Kayleen,
Be sure to keep us all updated (just add to this thread and it’ll come back to the top). I enjoy hearing people’s experiences as they unfold.
Cheers, F.[cowboy2]Hi Kayleen,
you mention your selling 3 of you properties, im not sure of you circumstances, but if you are selling your properties, in the hope of purchasing positively geared properties, IMHO, is it really necessary to sell so many properties, to purchase positively geared properties, you might find, that selling 1 of you highly geared properties, that have a nice capital apprecation, may be able to pay down some of your negatively geared properties, and may allow you to invest immediately into positive cashflow properties.
its that your suggested idea, i can see you maybe up for a very high capital gains tax, and in doing so, it could be a decision you may regret later on, the reason why im a little concern is, i know someone who had quite a few negatively properties and sold them to invest in positive cash flow properties, yet has regretted the decision, as after talking to there banker, they were still able to invest futher more, but didnt have to sell the amount of negative geared properties, that they did, and yet they were still able to build there portfolio, yet at the time, they had not thought it out properly and blew many of there profits in capital gain tax, which IMHO was not really necessary..
positive cashflow might be the way, but if your properties are only a few years away from being positive or if only one is needed to be sold instead of quite a few, you might be setting back your property portfolio, with the quality properties you have already gained..
Cheers,
sisJeff Paget
Trainee Stock Broker & Equities Advisor
Mobile: 0402 363 805Can you tell me what the 11 second rule is. I have searched, but can not locate what it is.
ThanksThe 11 second rule is in Steve’s first book. If you have read it thoroughly, it will give you an explanation as well.
Kayleen, Are you sure you are doing the right thing?
Watch out for:
– capital gains tax
– buying inferior properties just because they are cashflow positive.Make sure you do your research before you jump into anything.
Terryw
Discover Home Loans
Mortgage Broker
North Sydney
[email protected]Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
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