What is more important when looking for investment property. Positively geared or future capital growth potential.
Also when i hav ebeen looking for a positively geared property, how do you find out if they are actually tennanted most of the time without taking agents word for it?
Cap growth or returns – it all depends upon your situation. If you need to generate additional income to support your portfolio/loans, then go for cashflow, if not go for capital growth however it will depend on your particular circumstances.
"how do you find out if they are actually tennanted most of the time without taking agents word for it?" – site inspection. Is the place furnished? Are there personal belongings?
Cap growth or returns – it all depends upon your situation. If you need to generate additional income to support your portfolio/loans, then go for cashflow, if not go for capital growth however it will depend on your particular circumstances.
"how do you find out if they are actually tennanted most of the time without taking agents word for it?" – site inspection. Is the place furnished? Are there personal belongings?
Get a
Cap growth or returns – it all depends upon your situation. If you need to generate additional income to support your portfolio/loans, then go for cashflow, if not go for capital growth however it will depend on your particular circumstances.
"how do you find out if they are actually tennanted most of the time without taking agents word for it?" – site inspection. Is the place furnished? Are there personal belongings?
Get a copy of
Cap growth or returns – it all depends upon your situation. If you need to generate additional income to support your portfolio/loans, then go for cashflow, if not go for capital growth however it will depend on your particular circumstances.
"how do you find out if they are actually tennanted most of the time without taking agents word for it?" – site inspection. Is the place furnished? Are there personal belongings?
Get a copy of any
Cap growth or returns – it all depends upon your situation. If you need to generate additional income to support your portfolio/loans, then go for cashflow, if not go for capital growth however it will depend on your particular circumstances.
"how do you find out if they are actually tennanted most of the time without taking agents word for it?" – site inspection. Is the place furnished? Are there personal belongings?
Get a copy of any current lease agreement
Capital gains without a doubt!
Without capital gains you are wasting your time I think. Making a few dollars per week now on a property that doesn't increase in value means you will be only making a few dollars per week in years to come. With inflation the value of that money will decrease over time too. And if there is a major expense, such as a new hotwater system, your cashflow could turn negative – then what are you left with?
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Terryw wrote:Capital gains without a doubt!+1
Without capital gains your better off putting your money in a fixed term deposit that pays 5% or 6% interest.
In some cases people get too caught up in the romance of property investing without doing the sums and considering the opportunity cost.
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