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From: Carlo Chiodo
What tha................
You've got to be kidding.
How can you possibly compare investing for income to investing for capital growth.
Lets look at some facts:
1/ Capital growth by % has FAR outstripped income % in areas where capital growth should be the main focus. 15% cap growth and 2% rental is WAYYYYYYYY better than 7% rental and 2% cap growth. The exceptions, in cyclically bad years...which last about 2 years. I can live with that.
Please don't tell me that I would have earnt more money by investing in a rental suburb for 7% rental yield (which is high for rent and unlikely) than investing in a high cap growth suburb. Please don't, that would just be tooooooo funny.
2/ Even if your income is low initially in a high growth area, watch it increase as your house price increases. Case in point: House i bought in Elwood for 210,000 in 96 is now being rented for $350, was being rented for $200 back then. Low income turns into high income. Why, cos its a high cap growth area. The house is now worth $600G. Yes the rental is low as a % of 600,000 but its damn high as a % of 210...not that I care about the rent much.
3/ Tax benefits of investing in capital growth given the discounted capital gains. Oh yes you get interest deductions on income, but you didn't want to negatively gear remember.
The statistics SHOW clearly that capital gains investment is much better than rental investment. Your mention of INTERNATIONAL SHARES as a good investment even supports investing for capital growth.
Im not saying dont invest for rental. Im saying, don't invest in rental and ignore capital growth.
Who knows, change your ways and you may have 100+ properties compared to the 50 or so you have now.
Regards
Carlo Chiodo
Disc: The above is only my personal opinion and should not be taken as advice.
What tha................
You've got to be kidding.
How can you possibly compare investing for income to investing for capital growth.
Lets look at some facts:
1/ Capital growth by % has FAR outstripped income % in areas where capital growth should be the main focus. 15% cap growth and 2% rental is WAYYYYYYYY better than 7% rental and 2% cap growth. The exceptions, in cyclically bad years...which last about 2 years. I can live with that.
Please don't tell me that I would have earnt more money by investing in a rental suburb for 7% rental yield (which is high for rent and unlikely) than investing in a high cap growth suburb. Please don't, that would just be tooooooo funny.
2/ Even if your income is low initially in a high growth area, watch it increase as your house price increases. Case in point: House i bought in Elwood for 210,000 in 96 is now being rented for $350, was being rented for $200 back then. Low income turns into high income. Why, cos its a high cap growth area. The house is now worth $600G. Yes the rental is low as a % of 600,000 but its damn high as a % of 210...not that I care about the rent much.
3/ Tax benefits of investing in capital growth given the discounted capital gains. Oh yes you get interest deductions on income, but you didn't want to negatively gear remember.
The statistics SHOW clearly that capital gains investment is much better than rental investment. Your mention of INTERNATIONAL SHARES as a good investment even supports investing for capital growth.
Im not saying dont invest for rental. Im saying, don't invest in rental and ignore capital growth.
Who knows, change your ways and you may have 100+ properties compared to the 50 or so you have now.
Regards
Carlo Chiodo
Disc: The above is only my personal opinion and should not be taken as advice.
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