Hello,
A basic questions that I'm just seeking clarification around:
– what's the difference between Cash Flow Positive property, and Positively geared property? I know it's quite subtle – CFP takes non-cash deductions into account, is that correct?
In that case, could you have a negatively geared property that is CFP?
Cheers!
Yes I think cashflow postive is the rent exceeds all costs
Postive cashflow may be negative geared, but after tax deductions it makes a cashflow profit (due to high depreciation usually)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
Hi,
Margaret Lomas seems to be the "expert" on cash-flow positive and has a lot of books out if you want to read further. It's all about the deductions.
DWolfe
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email MeOf course if and when you sell the property any Building Write Off deductions reduce the Cost base so triggers a potential CGT issue.
To me i would rather not rely on Tax deductions to make the numbers fit.
Richard Taylor | Australia's leading private lender
You must be logged in to reply to this topic. If you don't have an account, you can register here.
