For negative gearing Die Hards??

How you going to rectify this??

Turn negative into income, cash flow???

Suggestions???

 

Sell or divert to stock? Follow...

 

Stock are perhaps bumpy??? Dividends slashed????

 

It is easy for B+H investors. Do nothing.

Our first IP was bought 28 years ago. Based on its purchase price, its yield today is 19%.

In other words, negatively geared portfolio become positive cashflow over time.

Our total portfolio is currently about $10,000 negatively geared.

This time next year, I forecast that it will be cashflow positive, especially with such low interest rates.

 

It reads as total current profile is 10k negative not the specific 28 year ago purchase

 

I think sell down is a good option when markets are rising, take profits and reduce debt

another option diversify into many markets to capture growth

 

Yep, our total portfolio is currently about $10,000 negatively geared .

At 19% yield, the 28 year old purchase is way, way, way cashflow positive .

 

Hey @Piston_Broke interested to hear why you have decided to sell down

 

Try bank interest .

IMHO, use property for growth as net income is crap and use shares for income as growth is volatile.

 

Sell down property and use the gain to buy index fund?

 

Should look at diversifying, but I dont whether timing is right atm

yields are getting slashed at the moment.

Would it be wise to jump into shares when our economy is heading for a recession??

Is it mum and dad investors buying share at the moment, and savvy investors are just watching??

 

Hmm... not sure. But one thing I learned is there might not be much correlation between shares/property prices vs. economy. Until Covid, the economy hasn't been good. US and China are at each other's throats, a lot of places were at the brink of war, or at war, bad economy in Europe, etc., yet, the share market goes up and goes down. Look at the share market since March, Covid is getting worse but my super in the right investment scheme jumped 17%! Illogical but that's the fact.

 

Selling property destroys net worth.

Probably means one’s strategy was wrong .

For newbies, I would suggest that they have a strategy where, on retirement, half of their net worth is in property and the other half is in shares (my preference in Super).

If done right, on retirement, they will have a property portfolio that is cashflow positive (preferably with debt) and continue to enjoy good growth PLUS a share portfolio generating tax-free income (around 4% pa) and potentially volatile growth (around 9% pa).

Happy Days, even in a pandemic .

 

Should have jump in on 20th March.

Total Returns of 36% since then.

 

Lol
No logic, same as some property markets today

who knows.....???

 

So how do we turn negative income into positive. 30 year time frame may not suit everyone

 

Many ways to do this.

The best option depends on one’s timeframe.

 

I am interested in what investors are doing today to help mitigate negative gearing properties?

With current yields at round 3-4% gross returns, not net .......and servicing criteria tightened significantly since APRA

its going to hurt to hold, or worse very difficult to accumulate.

Not saying its good or its bad..... but if you want to move forward cash flow is critical

 

Granny flat and buy a quality property that requires little maintenance and expenses including land tax

 

Yes that’s what I thought my post doesn’t make sense now that MTRs post saying negative geared after 28years is scary, was deleted I was too lazy to quote it