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From: Jason Prestwidge
<PRE>After reading RD/PD books and a few others, I get the feeling it is better to positively geared.
With low inflation and low interest rates this would surely be a better prospect, would it not.
But then again I have a good friend in realestate that swears by negative gearing.
I currently have a 1bedU on cleveland st Chippendale, Sydney, bought in Feb 2000 for $210,000 (loan of $220K).
Rent is $250/week, interest is 6.7% fixed for three years , is this looking good so far or did I go in too negative.
The Unit was new therefore has depreciation in its favour.
I also have a deposit bond of $250,000 on a development in StKilda ,Melbourne, this is due for completion in early 2002. I bought this off the plan for a play on the market with a view to sell of the plan 18 months later. But because it has taken longer than expected to build, I am looking at purchasing this as I would get a bettersale price with a tennant in place.
My own home is worth $270K with a loan of $120K.
Sorry if this is a tad long, but am I heading in the right direction or not?
Jason
</PRE>
<PRE>After reading RD/PD books and a few others, I get the feeling it is better to positively geared.
With low inflation and low interest rates this would surely be a better prospect, would it not.
But then again I have a good friend in realestate that swears by negative gearing.
I currently have a 1bedU on cleveland st Chippendale, Sydney, bought in Feb 2000 for $210,000 (loan of $220K).
Rent is $250/week, interest is 6.7% fixed for three years , is this looking good so far or did I go in too negative.
The Unit was new therefore has depreciation in its favour.
I also have a deposit bond of $250,000 on a development in StKilda ,Melbourne, this is due for completion in early 2002. I bought this off the plan for a play on the market with a view to sell of the plan 18 months later. But because it has taken longer than expected to build, I am looking at purchasing this as I would get a bettersale price with a tennant in place.
My own home is worth $270K with a loan of $120K.
Sorry if this is a tad long, but am I heading in the right direction or not?
Jason
</PRE>
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