Positive Or Negative Gear??

[jaycee]

Property is a long term investment (in most cases anyway). Most definitions of medium term refers to about 5 years and long term comes to 7+ years. Peoples general expectation tend to be that property prices will double every 7-10 years.

The market certainly does appear to be going south at the moment. Most people however are confident that it will bounce back at some point. It might not be next year, but eventually it will bounce back.

If you sell now you would reaslize a $30k loss. If you decide to wait long term, the property might double in value. At this point you need to decide if you think your property will increase in value in the future within an acceptable timeframe.

Personally I don't care that the market is currently dropping. I've owned several properties for over 10 years now. In that time values have gone up and down. They're in good locations and have almost trippled in value since they were purchased. From my long term prespective, some gearing losses and -10% growth are irrelevant.

Peter, do you think it's fair to say (not suggesting anything you've said ws wrong, as it is so obviously right), that bluestorm is talking about possibly less experienced investors looking at jumping in with the hopes of duplicating other's previous successes, right now ?
To the new investors with no equity yet cvause they have not owned property for over 10 years like yourself, is your non concern with the current situation which you've admitted RIP's are sort of in, as relevant to them as it is to people like you who have already profited form their holdings ?

....just saying....

 

[silverx]

For an investment, it should go from negative gearing to positive within the next 3-4 years or earlier otherwise it's not a good investment.

is that the norm? how do you achieve that? by paying off the loan? or increasing the rent?

 

[silverx]

Yeah I think looking at the over all picture is important. A good example is a place might cost you $20 a week to hold after ALL goings and 100% finance (if you used equi from another place). Now over all thats pritty dam good! Its 1k neg come tax time, also lets think of buying such places. rent increase wont take long to turn that into a true positive cash flow place and start the snow ball of paying back interest only!

yeah i dont mind holding a property if it only cost 20 dollar per week can i buy 2 please

 

[jaycee]

is that the norm? how do you achieve that? by paying off the loan? or increasing the rent?

Increased rent

I have a bad investment

 

[silverx]

lol i think mine is even worse, luckily i am doing alright with second one, lesson learnt i suppose
cant move to third one because the first one seems to stuff me up badly

 

[Cartoon]

i must be lucky! im being picky with what I buy atm and working on 100% finance, all out goings and some are just neg gearing buy $20-$50 and others are slightly positive!

I must be shopping in the right areas

 

[AlmostBob]

CF+
retire and live on rent,
travel anywhere you want,
do what you want, see everything you want

tell ya in 9 days, leaving on next 8 month holiday​

finished overseeing trades for summer renos,
Kathryn was a bit slack, she only bought one more house this year, and missed her $mark, ROI is 59%pa

staff all set to take the reins again for winter

quite nice​

none of this years flights go through washington, I like that airport, done nicely for 'merkin pollies

 

[emptyvessel]

CF+
retire and live on rent,
travel anywhere you want,
do what you want, see everything you want

tell ya in 9 days, leaving on next 8 month holiday​

finished overseeing trades for summer renos,
Kathryn was a bit slack, she only bought one more house this year, and missed her $mark, ROI is 59%pa

staff all set to take the reins again for winter

quite nice​

none of this years flights go through washington, I like that airport, done nicely for 'merkin pollies

You guys rock! I fully subscribe to your strategy.

8 month holiday. Yeah baby, that's what I am talking about. Enjoy.