Positive gearing investment strategies

Discussion in 'Investment Strategy' started by roblin, 10th Apr, 2022.

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  1. roblin

    roblin New Member

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    5th Apr, 2022
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    Sydney
    Hi all,
    I am a newbie here.
    I would like to start property investing, but not sure where to start. Maybe I'll start with these questions:
    - I know that I prefer to use the positive gearing rather than the negative gearing. My income is currently just above the 45c tax bracket while my wife's is in the 32.5c bracket. What is the best ownership structure to start?
    - I am currently considering using a property buyer agent. I have been researching Helen Tarrant , Rethink and propertybuyer.com.au. Any feedbacks on using their services? Any other recommended buyer agent?

    Many thanks.
     
  2. Trainee

    Trainee Well-Known Member

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    Do you think positive gearing (higher rental yield) means lower capital growth?

    One way to get positive gearing is putting down a bigger deposit. Would you buy a property for cash, no mortgage? Why / why not?

    With 180k+ income, you would benefit more than most on negative gearing.
     
  3. Beano

    Beano Well-Known Member

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    I have found higher rental yields properties have had more CG (based on my experience in analysis of my 68 properties purchased over a space of 25 years) .

    But remember yield is only one factor that generates CG.

    There are many other factors.

    The factor that has generated the greatest CG has been land and there ability to increase rentals.
     
  4. rnadella

    rnadella Active Member

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    Great to know about 68 prop's.
     
  5. tk421

    tk421 Well-Known Member

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    i know a guy who buys houses near unis and rents out the rooms, I think he cleared 800-1k a week in rental income for a big 5 bed place but was having to cover a lot of the costs, plus it was a lot of leg work and phone calls, he made a bit more money when rates dropped as he was paying something like 15-20k in interest per year, he was also highly leveraged in order to free up cash and he would sell when the place got a few years too old..

    I really wanted to do it myself at one point but not sure I'm cut out for the maintenance side, its a fair chunk of work but he sure made it work.

    And a place can be positively geared, but if just one renter is in there and they change then market rents can drop or rates can go up and suddenly it is costing you money, so fingers crossed for capital growth as the exit costs can pile up.
     
    Last edited: 11th Apr, 2022
  6. The Y-man

    The Y-man Moderator Staff Member

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    Compliance has become a lot harder in many states too.... (for good reason)

    The Y-man