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Wednesday, March 04 2015

Cash neutral investment properties are those that pay for themselves without any additional contributions from the investor.  If the property is one that delivers reasonable price growth over time it really becomes a no brainer. A property that pays for itself and builds your wealth and your retirement fund. But do they exist and where do you find them?

Do they exist? Yes, but you won’t find them with a sign out the front. And you probably won’t have much success if your are using realestate.com.au  either. In fact if all you do is look at properties you will probably never find one.

That’s because the property is only one part of the story and there are a range of other factors that will influence a property’s cash position and whether it will be neutral for you, including.

  • Your specific financial position
  • Your taxable income
  • Tax structuring
  • The financial structure set up to fund the property
  • How the property is managed

Unfortunately most people get focused on the “property” and pay little attention to the structure around it. In many cases the structure and strategy become an after- thought.

This is unfortunate because in many cased they are doing themselves out of thousands of dollars a year. Which in turn could undermine goals like paying off their home loan and building further wealth.

Our approach with clients is to start with the strategy first in the context of the client’s financial position. We map out the financial goals and then put in place the correct property and structure to support it.

What opportunities are you missing?
Are there ways to improve your current cashflow that you are not currently doing? Are your finances correctly structured to build a property portfolio or are they holding you back? Do you have a plan of attack of how to build a portfolio? Are your finances set up to ensure you can acquire property without negatively impacting your lifestyle? Are there things you are missing that you should or could be doing that could have a significant impact on your wealth creation plans?

Contact us for an initial discussion.

Posted by: Greg Carroll AT 06:38 am   |  Permalink   |  Email