Category Archives for "Strategy"

Apr 17

Negative Gearing is Doomed, New Trend Changes Everything

By Ian Ugarte | Strategy

Negative Gearing is Doomed,
New Trend Changes Everything

I offloaded 7 negatively geared investment properties in a “fire sale” that cost $300,000.00, before changing my course and leaving paid employment within 13 months. Find out how I cracked the code.

In today’s market, the expected rental yield on a negatively geared investment property is about 4.5 to 5%, however I have tapped into a new trend that has allow me to achieve what many consider impossible.

Welcome to a world where 10 to 12% yields are the norm, and instead of depriving your family of luxuries, you can enjoy positive income from day one.

The house on the left is a case in point. It picks up twice as much in weekly rental as the one at the right ($1,500 vs $600) despite the fact both are comparable size and design, and they’re in the same ordinary, everyday suburb.

The capital gains are exceptional too. In fact, a recent property received an offer for $930,000 whereas a similar house next door sold for just $780,000.

Many think it’s impossible because they’ve bought into the negative gearing myth. Yet with 1.55 million Australians dealing with housing stress, the marketplace rewards you for supplying affordable housing to people who desperately need it.

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