Remember that if you get unemployed, you still have to pay interest.
hahahahaha
I have not been employed for almost 10 years now and my property income has always surpassed the interest I pay. Its also left me with a nice level of accruing cash surplus. Funny rental increases are keeping pace with rate rises and demand for rental property is increasing all the time. Cashed up and ready to take advantage of the market mmmmmm make it on the up curve or the down it don’t matter With a loan to value ratio of less then 30 % and equity to borrow if and when I see the time is right and the opportunity arises.
Im unemployed and loving it!And that, Nucopia, is exactly the reason I suggested that Zebulan hold on to his properties if he can. He/she may just end up in a similar situation to you.
Cheers
K
Nucopia wrote:Remember that if you get unemployed, you still have to pay interest. hahahahaha I have not been employed for almost 10 years now and my property income has always surpassed the interest I pay. Its also left me with a nice level of accruing cash surplus. Funny rental increases are keeping pace with rate rises and demand for rental property is increasing all the time. Cashed up and ready to take advantage of the market mmmmmm make it on the up curve or the down it don’t matter With a loan to value ratio of less then 30 % and equity to borrow if and when I see the time is right and the opportunity arises. Im unemployed and loving it!they key here being "my property income has always surpassed the interest I pay".
I'm glad you're doing so well Nucopia, you're one of the first people who actually have a POSITIVE geared property investment. Actually, you're the second one that ever posted he had a positive geared investment instead of a negative geared one. It's good to hear at least someone did their maths.Unfortunately , for every positive geared, there are 500 negative geared ones. So until that is solved, we're still in for big trouble.
Scamp wrote:I'm glad you're doing so well Nucopia, you're one of the first people who actually have a POSITIVE geared property investment. Actually, you're the second one that ever posted he had a positive geared investment instead of a negative geared one. It's good to hear at least someone did their maths.Unfortunately , for every positive geared, there are 500 negative geared ones. So until that is solved, we're still in for big trouble.
Nah, you're wrong there as well. There's plenty of people out here in the investing world who earn a decent positive income from property……it's just that, unlike some people, we don't carry on like a pork chop about it.
hehehe .. some interesting commentary …. Z hang in there
forums always interestin – though this site has become a quite negative place .. would be nice to see a surplus of positively geared comments for a change
interest better than tax?! … for some perhaps … but if I be payin tax – I'm makin money – am happy to pay tax (though only a leeetle bit) for the rest of me life *grin* .. well .. till 60 or so
be well …
Just manage your risk and maintain the necessary buffers (in our case 2 years unemployed) …. direct property for me is a long term investment (though many here have the skill and time to make it a short/medium term investment)
there are many different investment strategies that you can put in place now with the interest rate rise to generate cashflow from the equity from your investment properties. i know of a few people now who are writing covered calls on the stock market and generating a cashflow of about 3% on their investment each month… it is a great strategy to add value to your portfolio and generate cashflow each month to assist with the rise in interest rates
tam32 wrote:I know of a few people now who are writing covered calls on the stock market and generating a cashflow of about 3% on their investment each month… it is a great strategy to add value to your portfolio and generate cashflow each month to assist with the rise in interest ratesYes, a great strategy as long as the stock value goes up. What happens what the stock value goes down ?
You're basically betting on a losing horse in order to keep a dying horse alive.Tam : Do you know what a covered call is ?… Do you realize the risks of it when stock goes down ?
Apparently not. The only thing you say is : they generate 3% on their investment each month.
What happens when stock dives ? ( I refer to something that happens every 7 years )
People take a nose dive.
I'm sure you will come up with another even more risky way to make money in order to keep your stock AND your interest payments up… but it's all ending soon m8.
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