Hey everyone,
After reading Steves book i still have some unanswered questions.
Before Steves book i only considered negative gearing as property investment, albeit a short term one.
Positive cashflow investing is something new to me.
I do however have some concerns about it. When you buy a $60,000 house and rent it out for $120 a week, as the book says, you still own a 60k house.What are some of the pros and cons you have encounted from owning such a cheap house?
the biggest problem in homes in that price range is deferred maintenance. Or more properly stated no maintenance. Unrealistic estimates of a repair cost will eat many many years in possible cash flow. You need to work out quick smart if you are a property trader ie in and out at the drop of a hat or if you are going to hold. If you a going to trade then by all means buy yourself a dung hole for 60k or 30k or 14k as there will always be a bigger fool (hopefully) . If you are going to hold to balance cash flow over your entire portfolio then try and buy something modern/updated or well maintained.
you need balance – one idea will not lead to investing success.
D&L Property Projects Ltd
Sourcing Quality Investments in New Zealand.Email to receive current deals & New Zealand Information Sheet.
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