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Clyde Poulton Real Estate

68 Bridge Rd Nowra

02 4421 2644

02 4421 2330

sales@clydepoulton.com.au

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To Postive or Negatively Gear your Investment Property

2 Oct 2015 Nowra 0 Comment

Almost anyone with a stable income and a small savings account, or a small amount of equity, can buy their first investment. Whilst lenders are starting to tighten their lending criteria there are still some good deals.

Until the end of time, financial planners, strategists and brokers will argue positive gearing vs negative gearing vs shares.

Those that are pro negative gearing will argue about the capital growth ratios. Most strategists will tell you that buying and holding almost always results in capital growth. In the opinion of Jason Wright ( property manager, trainer, mentor and investor specialising in cash flow positive investments ) the sky’s the limit on the number of cash flow positive properties you can buy as long as the banks continue to lend you money. (As a general rule of thumb: $ 1 return per $ 1000 spent + 10% = cash flow neutral, $ 1 return per $ 1000 spent + 20% = cash flow positive ). However most everyday people on average incomes can only buy one or two negatively geared properties before it impacts significantly on their way of life. Positively geared properties, whilst the capital growth may not be as high, give you the flexibility of additional income to increase your portfolio or take a holiday or pay for school tuition.

Whilst we are not financial planners, and you should always seek independent financial advice, we are Professionals in the property market.

Looking to increase your portfolio, to have your property valued or to discuss investment opportunities in our area, contact our office on 02 4421 2644, or email Karl Poulton through our contact page.

 

 

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