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From: Toyo Spares
Whilst reading an advert this morning for one of the investment seminars doing the rounds of Melbourne at the moment, I was interested in a comment that said something like "negative gearing is for people who know nothing, what you should be doing is positive gearing IP".
Now, I understand the negative gearing theory but may not be up to speed on the positive gearing theory.
My interpretation of what they are saying is - I should aim to have IP that are cash flow positive (i.e. interest and outgoings are covered by rent and the associated tax refund from depreciation etc. so that I actually end up with some cash leftover in my pocket.
Is this what most of you experienced investors do or is this a strategy and aiming for larger capital growth is another. Alternatively, does it depend on each individual situation.
Toyo
Whilst reading an advert this morning for one of the investment seminars doing the rounds of Melbourne at the moment, I was interested in a comment that said something like "negative gearing is for people who know nothing, what you should be doing is positive gearing IP".
Now, I understand the negative gearing theory but may not be up to speed on the positive gearing theory.
My interpretation of what they are saying is - I should aim to have IP that are cash flow positive (i.e. interest and outgoings are covered by rent and the associated tax refund from depreciation etc. so that I actually end up with some cash leftover in my pocket.
Is this what most of you experienced investors do or is this a strategy and aiming for larger capital growth is another. Alternatively, does it depend on each individual situation.
Toyo
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