Negative Gearing
Negative Gearing < Property < Keys To Succcess Club
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Negative Gearing is when a property costs more to run than it returns in rent. The net result is that you lose money as you hold onto the property.
Why would you do this? Well, you are making the assumption that the Capital Growth will go up faster than the losses you are making, hence overall you will be in profit. Remember that even if this is the case you will only have a paper profit and that you will still need to cashflow your properties out of your own pocket.
It is critical to think about how you get access to the capital growth before you enter into a negative gearing investment property, and have a buffer in case the market does not go in the right direction.
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Keys To Succcess Club > Property > Negative Gearing