Hey there,
Would just like to say this forum is fantastic, I am learning so much! The trouble with learning is it generates more and more questions…I’m wondering if an experienced PI or two could answer this question- how do investors decide whether to aim for +CF properties or long term capital growth?? Are they mutually exclusive? Is this just individual investment style and number of years remaining until retirement??
I’m 30 and have two investment properties, equity of about 350k. I live in Sydney and can’t decide whether to buy another investment, say in QLD, where +CF is still possible, or to go for an enormous mortgage in Sydney (to reside in) and wait for the next cycle of growth.
Such big decisions… just wondering what questions an experienced PI would ask before making such a decision??
Andy [ohno2]Hi Andy,
The key with property is to have an investment strategy up front, to find your balance, keep it $mart, $imple and clear. What level of risk you choose all depends on what you’re comfortable with. Some will choose CF+, others negative gearing and some a mix of both. There are many ways to become financially successful and you need to develop a system that works and suits your personal circumstances.
So how do you find the right degree of risk? Every formula will be different. Generally the greater the reward the greater the risk;
Having a methodical plan is your best defence to reduce risk. Look ahead at all the possible obstacles that may present and plan how to deal with them.
Don’t let anyone convince you that what for you is a major step out of your comfort zone is no big deal. Taking on property investing is different for everyone so start as big or small as you feel confident with and work your way up.
AmandaBS
http://www.propertydivas.com.au
FREE online Property Resources“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”
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