When you talk about positive cashflow/gearing[baaa], is it normally before tax effects or after,
Trajik,
I think the answer varies amongst individuals but I prefer to think the real +ve cashflow deal is one before tax. Because if you need to take into account the tax effect in order to get +ve cashflow, you will eventually max out the tax benefit.
Just opinions from novice.
From FUNHi Trajik
I agree with Fun, I regard it as “before tax effects”
Cheers, Paul
Paul Dobson | Vendor Finance Institute
http://www.vendorfinanceinstitute.com.au
Email Me | Phone MeAn alternative way to finance your home.
I always consider “before tax” to be me and the Govt.
I always consider “after tax” to be just me.Really, I’m more interested in just me.
Cheers,
Dazzling
“No point having a cake if you can’t eat it.”
Hi Trajik,
There are many factors that will influence the tax benefits if any and as such may be unpredictable or unforseen. e.g. losing one’s taxable income (job), or reduction in income etc.
In Steve’s templates the sums are done prior to tax considerations, and for me if I am evaluating a property I would like it to be CF+ before tax. Then, if there are any real tax benefits they are a bonus.
Like capital gains the tax effects can change as can other factors to change an investment from CF+ to CF-. Having the investment CF+ before tax provides a bit of a buffer.
Regards,
pr
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