Hi all. Briefly mentioned our previous dramas with neg gearing 3 years back (on the forum). We have read Steve’s books and have got the bug !!We ran it by our accountant(off the record), and he suggested that we should hold off, because the market is slowing, and that we owe 204K. Our place would be worth 400K. He suggested we concerntrate on getting our loan down…What do you think ?I really hate the feeling of working, just to pay off a house !!!!!!!We want to take action sooner than later !!
pabbs
Hi pabbs,
Perhaps not a very aggressive approach I admit, but perhaps look at considering reducing your current debt (look at cutting back on expenses and use these to reduce your mortgage)? If you feel property prices will remain steady for some time then maybe focus on debt reduction. It’s just a matter of personal comfort levels of debt.
Cheers,
Gatsby.“Sometimes the hardest thing to do in life is often the best thing to do.”
Hi there,
Thanks for your post!
I agree with the Great Gat in that it is better to ‘fix’ the problem that resulted in you being in debt rather than trading your way out of it.
However, I don’t necessarily agree that ‘woking in a job’ is always the best option to fix a past wrong. Back in my first book I outlined the importance of identifying the path of least resitance. This being the case, if your existing property is holding you back from achieving your goals then I’d be seriously weighing up the pros and cons of retaining it.
Now for the wisdom in book #2… Action -> Reaction -> Momentum. If you want something to change then first something must change! From my experience, thinking about change is nearly as effective as doing something that’s different.
So, why not go back to your accountant and tell him/her what your goals are and ask (not for financial advice) but the accounting ramifications of keeping vs. selling from the perspective of what is going to get you to your goal the quickest.
Hope this has helped.
Have a lovely night.
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Great advice, as always, from Steve.
My first thought when reading your post was “how successful is your accountant?” His advice is very much “old school” save, pay off your loan, put money into super and then retire.
Most people will tell you that this is the slow way not the fast way.
Having said that, you do need to ascertain your total financial position – and cashflow position and needs, before you make a decision.
My thoughts are that it is a buyers market now and the successful investors I know are buying now not waiting – but, of course, you must consider the bigger picture for you.
Regards
Megan
Thanks all for the responses !! We were feeling a tad flat after chatting to our accountant.. It does make sense to reduce our debt first, and it is coming down quite well, due to Line of Credit loan. We have always been VERY good at saving etc, but are anxious to ‘put right’, the neg gearing experience that put us behind in dollars….I think we may have to chat to a financial adviser in order to progress. Again, thanks all for the positive responses !!!They are very reassuring. [biggrin]
pabbs
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