Hi to all, Just have a question for more experienced investors. With property you become asset rich and usually cashflow is alright depending on your returns and when & where you bought. But if you want to keep growing you have to reduce your debt or increase your cash flow.Increasing your cash flow with obviously be the quckest way but the question is how ?? shares, managed funds , business ( this is to suit buy & hold I am young)
Looking forward to your comments
Nailwoghi nailwog
you are right cash flow is king. in response to how do you grow?
you must buy cash positive properties. If you buy neg. geared you will get stuck on the serviceability of the loans and max out and not qualify for future loans and therefore growth. But if you buy cash positive ie ones that pay for themselves plus put say $2000 a year in your pocket then banks will continue to lend to you and you will grow not only in Assetts but in Cash flow. thiw is how people on average income can control multi million dollar property portfolio’s.
Obviously you will need to continue to work to pay for your lifestyle while your assetts are paying for your future wealth. i suggest you learn about the stockmarket as often “Gimes” come along (ie some new floats) where it is easy to make a quick dollar. its important if you want to become financially independantyou learn as much as you can about both property and stocks, it is good to have a mix of investments and its very difficult to buy well in property at the moment. i wouldn’t pay a managed fund to handle my money, i rather take personal control, have some fun and learn.
regards westanHi crashy, I checked out your web site not bad reading you profile you said you were able to stop working full time work, what did you do to achieve this as in general share trading or somthning else for your cash flow.
nailwog
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