Positive gearing the way to go - article with Michael Xia

I don't think the large number of Mum and Dads will be able to do that with any ease - if at all.

The setting up, the qualifying with the Bank and so forth; quite prohibitive and most will probably say; "Nup; too hard".

If they do manage to buy in a company, and then want to also take out a loan using that company, how will the serviceability go if there is no company income?

 

True...but I don't think the appetite for property will die down particularly if low rates were to stay. The shift to purchase higher yielding properties will be a natural progression. 6 - 7% is the expectation for us seasoned investors in areas like Logan, but will be gold for mums and dads who are used to 4% being touted as a "great return", particularly when there is no incentive to do otherwise (negative gearing)