Positive gearing in Sydney?
- Thread starter Serge
- Start date
Hi Serge,
I assume you mean a low deposit IP. You can always positive gear a property with a big enough deposit or clever renovation. I would be very surprised if such a mythical IP actually existed. Sydney rents have been stagnant for a while now as growth has charged ahead. A bigger mortgage means higher repayments which always seems more than the rental income.
When we get a period of no growth, low interest rates and rising rents the mythical positive geared IP may return for a short while before it disappears again only to live on in investors hopes and dreams.
Mike
I assume you mean a low deposit IP. You can always positive gear a property with a big enough deposit or clever renovation. I would be very surprised if such a mythical IP actually existed. Sydney rents have been stagnant for a while now as growth has charged ahead. A bigger mortgage means higher repayments which always seems more than the rental income.
When we get a period of no growth, low interest rates and rising rents the mythical positive geared IP may return for a short while before it disappears again only to live on in investors hopes and dreams.
Mike
You can wrap properties in Sydney to acheive positive gearing.... As it's done daily by a number of people that I know of, plus some of those that attended the recent Rick Otton Boot camps.
Wrapping is a great way to form positive gearing with very good cashflow. If you follow the right system it can be very gratifying financially.
Cheers
Robert
Wrapping is a great way to form positive gearing with very good cashflow. If you follow the right system it can be very gratifying financially.
Cheers
Robert
Hi Serge
5 % is quite good. I have recently seen a dual occ returning 18 000 on a buy price of 267 000, so around 7 %. To be making money ( my view of cashflow positive is it has to put money IN your pocket before depreciation) you need near 10 % rtn.
Most lenders consider you to be "revenue neutral" at aroudn 12 to 15 %.
Ta
rolf
5 % is quite good. I have recently seen a dual occ returning 18 000 on a buy price of 267 000, so around 7 %. To be making money ( my view of cashflow positive is it has to put money IN your pocket before depreciation) you need near 10 % rtn.
Most lenders consider you to be "revenue neutral" at aroudn 12 to 15 %.
Ta
rolf
