All Topics / General Property / -ve to +ve cashflow

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  • Profile photo of Ricksters12Ricksters12
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    @ricksters12
    Join Date: 2004
    Post Count: 17
    August 12, 2004 - 12:50 am

    Hi Fellow Investors,

    Can a -ve geared property become +ve geared property?
    How can you make -ve geared property to +ve geared property?

    Keep Smiling!!!
    Ricksters

    Profile photo of MonopolyMonopoly
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    @monopoly
    Join Date: 2004
    Post Count: 1,612
    August 12, 2004 - 12:57 am

    Yes Ricksters,

    It is possible!!! When you pay enough of what is owed on the property (principal) that any of its associated costs (insurances, rates etc) become less than the income (rental) it generates.

    Cheers,

    Jo

    Profile photo of depreciatordepreciator
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    @depreciator
    Join Date: 2003
    Post Count: 541
    August 12, 2004 - 1:19 am

    Or if you make improvements to the property that enable you to increase the rent.

    Of course, on the flip side it’s also easy for a +ve geared property to become -ve.

    Profile photo of yackyack
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    @yack
    Join Date: 2003
    Post Count: 1,206
    August 12, 2004 - 1:25 am

    Or you save a BIG FAT deposit.

    Profile photo of JetDollarsJetDollars
    Participant
    @jetdollars
    Join Date: 2003
    Post Count: 2,435
    August 12, 2004 - 1:13 pm

    When your bank does not take anymore money from your bank account and you see it grow everyday.

    Kind regards

    Jet Dollars
    “Ask and you will receive. Seek and you will find; knock, and it will be opened to you.”

    Profile photo of Ricksters12Ricksters12
    Member
    @ricksters12
    Join Date: 2004
    Post Count: 17
    August 13, 2004 - 12:51 am

    So its better to pay I & P for your property investments? no Interest only?
    Thanks to all who replied

    Profile photo of luckyoneluckyone
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    @luckyone
    Join Date: 2003
    Post Count: 148
    August 13, 2004 - 3:36 am

    If you can afford to pay P&I it’s definitely a better way to go as you are constantly building up equity in your property. However, if you have a PPOR debt as well, you may not want to pay P&I on your investment property as the interest on your PPOR is not tax deductible. You might be better paying extra money off your PPOR instead.

    Thanks,
    Luckyone

    Profile photo of Ricksters12Ricksters12
    Member
    @ricksters12
    Join Date: 2004
    Post Count: 17
    August 18, 2004 - 10:51 am

    Hi Luckyone,
    What is PPOR again? Sorry im new to this.

    Thanks for the advises

    Profile photo of Mobile MortgageMobile Mortgage
    Member
    @mobile-mortgage
    Join Date: 2003
    Post Count: 913
    August 18, 2004 - 1:10 pm

    Hi Ricksters,
    PPR is short for Principle Place of Residence.

    Regarding Interest Only repayments, lower repayments can also help maximize serviceability on further lending.

    Regards
    Steven
    Mortgage Broker

    [email protected]
    http://www.mobilemortgagemarket.com.au
    Ph:1800 820 500
    VICTORIA

    PLEASE note comments made should NOT be taken as specific taxation, financial, legal or investment advice. Please seek professional, specific advice.

    Profile photo of TerrywTerryw
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    @terryw
    Join Date: 2001
    Post Count: 16,213
    August 18, 2004 - 11:23 pm

    Hopefully all of your -ve properties will become +ve over time as rents are constantly increasing due to inflation.

    Terryw
    Discover Home Loans
    North Sydney
    [email protected]

    Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
    http://www.Structuring.com.au
    Email Me

    Lawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au

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