TPFKAD said:
Because that is where the good returns are.
What, like buying a place for $680k and renting it 5 years later for $4200?
I don't know of any 1st time investors who have an eye to spot that sort of deal. If they go for that kind of expectation from the start the chances are they will be disappointed.
At least you have the potential to make money versus the certainty of losing it through yields that don't cover the cost of capital.
What are you talking about?
Are you saying that $700k properties are all +ve geared? Are you saying that all investors should be able to spot these lucrative deals?
Seems like you're going right out on a limb just for argument's sake. Your figures you're basing your "smackdown" on are very much exceptional rather than the rule.
I don't know about you but I want to buy the best performing property out there - the "exceptional" opportunity. Not just the average run of the mill stuff.
Who said anything to the contrary?
I find that highly condescending.
Then maybe you shouldn't condescend others. Just a thought.
Everyone should start off with rubbish properties just because that is the way it should be?
Who said that? What's with your barrage of straw arguments?
There are ways of learning the ropes sufficiently without having done your dough already in a low yield property. This forum is meant to be one of them!
Where is this magical post where I suggested someone buy a low yield property?
With risk can come reward.
And loss if you get it wrong. Hardly a place I would be suggesting a novice investor to go into.
I wouldn't put off anyone starting their investment journey from taking a risk. In fact I would recommend it if they have ambitions to hold a significant portfolio at some point in the next twenty years. Identifying the profitable exceptions is precisely the path to achieve that goal.
1. It's not the only path to the goal
2. There are limited exceptions. You act as if they're falling off trees and everyone should be able to get them.
3. Limited risk to start with is a safer model. I've seen too many do their dough because they tried to exceed their ability/knowledge.
And we should be assisting that process not condemning everyone to negative gearing...
I know a lot of people who have made a lot of money out of -ve gearing. Why so negative? Why so close minded? You come across like a zealot who can't accept that there's more than one way to skin a cat.
Even in residential your comments limit the view from where money can be made.
No they don't. At all. It's just you trying to do a big smackdown based on a straw argument. You're totally transparent so I'm not sure where you get off on calling other people stupid.