it is too easy.... but on the other side of the NG is the huge capital gains tax we have to factor in.... say I have a $10,000 pa loss for the first 5 years, before it becomes positive...so $50,000 over 5 years... then cash it in later to move on, and I have a $100,00 gain, of which 50% is taxable.... I am now square....
if you have a larger gain, you pay the tax man... on the example above, you end up even
I have a couple that have become positive this last year... plus large capital gains, if I want to cash them in
the bottom of the market has doubled in the past couple of years, so the bargains are few and far between.....
in fact I have not seen any bargains, in my patch, since early to mid 2008, when swan and stevens were still raising interest rates, before they panicked and dropped them in October 2008
I make some really nice profits, but I would never dream of paying the prices the bears keep quoting as an average house price
I prefer old period homes, that have not been renovated for 30 plus years....easy peasy to do a reno, new kitchen and bathroom, air etc....any money spent is immediately recognised in the value, and the rent returns...
A house on a corner block is the best deal....I subdivide and add another house with its own street frontage etc It must be in a good street, not the best street, but there are a lot of areas, suburbs and streets that are no go zones for me.
I look like having to twiddle my thumbs for awhile again...
