what mortgage rate do you need to have positive cash flow?
- Thread starter boz
- Start date
That kind of thinking is too rational Lizzie, you'll never be a good politician talking like that.
Ticked the 8.5 to 10% ish.
Was only the constructions that chewed up a bit of money to begin with, but it's been fun and didn't feel any pain, just a fine sense of achieving and appreciation. Plus, they virtually had equity straight away and kept growing, we built, but built well if that makes sense, and then started to accumulate a little nest of positives. So, not been stretched, and now interest rates are falling, that's just a very sweet bonus.
Was only the constructions that chewed up a bit of money to begin with, but it's been fun and didn't feel any pain, just a fine sense of achieving and appreciation. Plus, they virtually had equity straight away and kept growing, we built, but built well if that makes sense, and then started to accumulate a little nest of positives. So, not been stretched, and now interest rates are falling, that's just a very sweet bonus.
Looking at the poll numbers it amaze me that only less then 14% are cash flow positive at rates above 7% and less then 4% have a little mortgage on IP.
I am sure this show that Negative Gearing is a much greater factor for property investment then I thought previously. For example, in Europe, where I've being living for long time, I hardly know anyone that has a mortgage on investment property.
Would be good to see the results again in a year time if property prices fall or stabilise.
Any other thoughts?
I am sure this show that Negative Gearing is a much greater factor for property investment then I thought previously. For example, in Europe, where I've being living for long time, I hardly know anyone that has a mortgage on investment property.
Would be good to see the results again in a year time if property prices fall or stabilise.
Any other thoughts?
Every property/money show I've seen on TV or online or in magazines over the last several years has lauded negative gearing and its amazingness and how you maximise the debt on an IP vs your PPoR etc etc.
Its pretty ingrained in the culture now, and probably isn't where you're from.
Its pretty ingrained in the culture now, and probably isn't where you're from.
hi, plusnq has it exactly right. doesn't make sense not to borrow to invest. I had these numbers at first. $200000 per house to be rented at $260 pw. That will give me +ve cashflow after factoring in interest & -ve gearing.
The reality: $255000 per house at end of devt. rented at $280 pw interest 8.77%
Ouch! Plus tenants who did not pay for 6 weeks. Double ouch!
Now: after eviction threats, tenants paid up. Possibility of rent increase shortly.
Interest rates dropping like flies.
Almost at square one - -ve gearing but +ve cashflow. I can't wait for rates to be 6% where I'll fix for as long as the banks allow.
Suddenly I don't need to sell.
BTW, I was totally not geared until I saw the money was going to tax anyway.
KY
The reality: $255000 per house at end of devt. rented at $280 pw interest 8.77%
Ouch! Plus tenants who did not pay for 6 weeks. Double ouch!
Now: after eviction threats, tenants paid up. Possibility of rent increase shortly.
Interest rates dropping like flies.
Almost at square one - -ve gearing but +ve cashflow. I can't wait for rates to be 6% where I'll fix for as long as the banks allow.
Suddenly I don't need to sell.
BTW, I was totally not geared until I saw the money was going to tax anyway.
KY
3.12%
. damn this minimum message limit
not to put too fine a point on it, but with a nickname of "cashflowplus" doesn't 3.12% seem... a bit low?
