Hi, Im new to investing and have done a bit of reading, personally i dont like the idea of negative gearing and would like to start with a first property hopefully which is positively geared. I know of steves 11 second rule as an estimate in quick calculation, but do these properties exist today? I know im gonna have to start small but have been looking and have had no luck.
Any help or advice would be appreciated.
Thanks
Marc.[biggrin]For your first property It may be best to look at a ‘standard’ purchase that you may be able to add value to and improve your returns.
A good quality, existing house in a good location, and bought at the right price is the SAFEST way to go. It will go up in value over the mid-long term.
This would probably be negatively geared, but a property built after 1987 will yield the most tax benefits (building write-off), which may bring the property closer to cashflow neutral or even cashflow positive. This is different to ‘positively geared’.
Steve’s 11 second rule is a good starting point to narrow down the search a bit, but you may be hard pressed to find something in a decent area that will fit (or come close to) that quick test.
Once you have one or two properties under your belt and you have more experience then try some more sophisticated strategies such as wraps, lease options etc.Cheers,
Marc.
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