Blimey! 2 out of 3 have an operational loss that would be 3% of capital on a $300k investment. With an average inflation rate of around 3% and a capital loss of 3% annually you would need a 6.5% CG to retain equilibrium.
You could bend these stats around to create all sorts of pictures but what I see in the main is the vast majority of investors, 90%, are prone to wishful thinking and are not aggressive and driven enough to make investing work effectively for themselves. God knows my landladies a prime example of that.
Freckle, as your side kick, I’m a firm believer that most people actually lose money than create wealth through property. It’s not just about purchasing a property and watching it grow in value.
Interesting stat indeed. No wonder we're getting a lot more enquiry regarding our negative to positive strategy.
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
Hey guys
It’s all about timing I guess!!!
When I first started buying property the negative loss where outweighed by the capital gain, In a bull market I did well from this strategy… and sold for a handsome profit…
I currently have two properties and one is where I live in all of their and the other is positive geared.
Any assets I buy needs to be Positive geared from the start otherwise waste of both time and money..
I wouldn’t be surprised if the governments cuts negative gearing…
Jpcashflow | JP Financial Group
http://www.jpfinancialgroup.com.au
Email Me | Phone MeYour first port of call in finance :)
Johann, I agreed with you while reading your post up until that last line….Won't happen. Happened in the 80's, reversed it and it won't happen again.
Oscar
You must be logged in to reply to this topic. If you don't have an account, you can register here.
