Ladies and Gentlemen’s,
Please bear with me.
The purpose of buying an IP is to achieve a capital growth over the long term. Maybe be short term if you are lucky.
In the meantime you have to ensure that the rent covers all costs for it to be + cash flow. This sounds difficult to achieve unless you allow for paper write offs on construction costs, and maybe f+f’s.
If this is the case then you would be looking to buy an IP built within the last fews years. On that basis you would have to search high and loan to find one under $200K.
Not to mention upfront costs e.g inspection reports
Did I miss something?????
Captain
captain my captain
the prurpose of buying an is mnot necessarily to achieve capital growth over the long term. it may be to generate cashflow. sometimes they are mutually exclusive. the trick os to find properties that do both. if you had bought a 20 year old 50k property in rural australia over the last 3 years this would have been achieved. it is harder now.
cheers
A spell checker?
Just kidding ha ha [
]Everyone is different as to what their objectives/goals are, but as this forum is a poitive cashflow property forum and as your name is Captain Positive, I suspect we probably have similar goals in that we both want positive CF (passive income). As long as each property I buy pays for itself and then some (to reduce debt over time), and the capital value keeps pace with inflation I am happy – any capital growth is a bonus.
Tas [
]I often have this discussion with people who argue that the purpose of property investment is to acheive capital growth. Ask any investment guru, they will tell you its all about YIELD and positive gearing. The bank doesnt care about capital gains either, they care about how easily you can service the loan. If your property value jumps 20% but your rent doesnt, you still have the same mortgage payments to make. Plus CGT really sux.
If you dont believe me, go play Monopoly, and tell us the object of the game. Does capital growth come into it? Why do you think that is?
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