Hello I read Steve's book 0 to 130, 3 months ago and was excited of the fact that property would be the vehicle to making my family financially independent.
I dissolve my partnership in a 6M business and sell my house for $550K to down size and become debt free (More money to Invest) and I look on this site today and it mentions that positive gearing does not work now because of the economic climate.
I feel as though the rug has been pulled from underneath me I have meet with accountants finance brokers setting everything up to get us ready to start our journey.
The whole thing is over before its even startedGlenn
Hi Glenn,
It's a shame about your situation, however if you think it is all over……….it will be. Perception is projection. Your planning for three months will go down the drain if you allow it to.
When some one pulls the rug from beneath you………learn to dance on a shifting carpet. If you see this as failure, it will be for you.
You mention reading one of Steve's books….is that all you based your planning on?
In the stock market you can paper trade. The property market is no different………..you can look/seek properties and research the market all without leaving your desk. The internet can be used to source sales, likely rentals, demographics, even visit the property courtesy of google earth which is also free. Therefore you can run the feasibility of positive gearing or positive cash flow before you spent a cent on consultants to set you up with whatever structures you've established.
Investigate other means of creating positive cash flow by perhaps developing new town houses and having depreciation help you hold the assets whilst capital growth kicks in. Investigate all possible strategies.
If you were involved in a $ 6 Million business surely you've encountered set backs and problems before……………this is no different. ………look for the opportunity and focus on solution not the problem.
Also seek out as much info/education as you can to improve your investing knowledge. Scour this forum and the threads it contains………learn as much as you can
Chin up and………..fail forward.
Talk about putting all your eggs in one basket. Talk with your financial planner , work out what you want to do, map out how you are going to achieve these goals. you have gone from running a business to being 'unemployed' and cashed up. Review your position and what you want to achieve.
Good luck.
Research.
If you've built a $6M business, I don't understand why you see this as such a setback.
Daedalus.
Why do you think cashflow positive is the only way to go? There are still plenty of ways to make money.,
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
lol your basing your investment descisions and your families future on what some anomonous posters on the web say? Dude seriously, unless this is a joke-get some PROFESSIONAL advice….
Hi, nothing wrong with having money in the bank either! $1M still means $80K without having to work for it!
The good investment will turn up, no problem. Keep looking.
KY
One investment strategy won't work in every economic climate. In tough times, the entrepreneurial still come up trumps. Have faith, there are many ways to skin a cat.
mentions that positive gearing does not work now because of the economic climate. The problem this refers to is most likely the problem of finding properties that have enough yield and a low price to produce a cash flow positive situation.
If you put enough money is as a deposit you can create a positive cash flow situation.
Also if you give up your job / business you can't borrow money from lenders as easily .
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