All Topics / Help Needed! / Positively Geared Investments

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  • Profile photo of moonpiemoonpie
    Member
    @moonpie
    Join Date: 2012
    Post Count: 1

    Myself and my brother, both in our 20's are looking to create a property investment portfolio. We are both new to property investing and are keen to learn as much as we possibly can before making any transactions. We have come across a bit of hype over the internet about positive cash-flow investments in the property market. Can anyone share any comments on this? Is it a common invetment strategy?

    Also can anyone reccomend any books or seminars or any other material that may assit us? Thanks, much appreciated!

    Profile photo of InvestorMickInvestorMick
    Participant
    @investormick
    Join Date: 2008
    Post Count: 55

    Hi Moonpie, firstly let me say positive cashflow property has taken us to full time investors in a little over 10 years. We could have transitioned earlier but chose not to. As to books and seminars you can’t go past Steve McKnight’s stuff in Australia and Robert Kyosaki’s Rich Dad, Poor Dad books. You will find plenty of discussions about this topic on the forums so get looking but do yourself a favour and hook into some of Steve’s seminars. You will not find a more honest person in the property investing world than him and that is saying something!
    Positive Cashflow investing as opposed to negative gearing is simply a property deal where you make more $ back in rent each month than you pay out and you make a profit vs. negative gearing where you make a loss but get a tax break from the ATO for your losses. With negative gearing you still need to put some of your hard earned income into the deal regularly where positive cashflow deals you don’t and they infact put money into your pocket each month. Yes, you will be taxed on this income but there are different strategies to minimise your tax legally also. Also you will find that negative gearing will eventually cap you out of how much you can borrow where positive cashflow will keep you going as far as borrowing is concerned.

    Profile photo of CatalystCatalyst
    Participant
    @catalyst
    Join Date: 2008
    Post Count: 1,404

    I'm assuming (as it's a property forum) that you are talking about CF properties.

    There are a many ways to have CF properties.

    Too much to go into them. Which type are you interested in?

    I'd suggest reading some magazines (free from the library) to get some stories from "real" people. This will give you an idea of some of the different strategies out there. There are a multitude of great books.
    It's no use really just saying I heard Cf is good, tell me about it. That strategy may not suit you. Investing in property (or anything) is different for everyone.
    You need to know, first, what your goals are and then how you will get there. Without knowing your personal situation no-one can advise as to what strategy would suit you. eg how much deposit do you have, how much do you earn, how risk averse are you? ++++

    Profile photo of EngeloRumoraEngeloRumora
    Participant
    @engelorumora
    Join Date: 2010
    Post Count: 618

    Another option is to read the API and YIP magazines, some great content there with different strategies used by investors.

    Engelo

    EngeloRumora | Ohio Cashflow
    http://ohiocashflow.com/
    Email Me | Phone Me

    "Make a PASSION an OBSESSION and you'll never work a day in your life"

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