Negative Gearing Property - Is this what you expect?

Most of us have grown up during a period where we have come to expect property prices to double approximately every 7 to 10 years.

As a result, many property investors have been conditioned into thinking that it’s OK to lose money on their property through negative gearing in the hope of enjoying a massive capital gain a few years down the track.

What is Negative Gearing? When the cost of owning a property exceeds the income it produces.

Sadly, many property investors sell their properties after only a few years of constant losses, well before they enjoy the capital gains they had hoped for.

This is because property values change in spurts.

For a long time property values remain fairly stable and then people start to wonder if they’ll ever go up again, particularly when they have to keep finding the cash to help their property portfolio to stay afloat.

These are some of the people who become the motivated sellers I talk about in my Super Secrets To Real Estate Wealth course.

Did you know that if you had bought a house in Japan 20 years ago, it would be worth much the same today?

Did you know that it wasn’t so long ago in England that some people literally walked away from their homes, leaving the keys in the door for their mortgage providers to come and repossess their properties because the mortgages were higher than the value of their homes?

Did you know that before the latest property boom, some parts of the US and Australia hadn’t seen a rise in property values for many, many years?

Investing in real estate is not something you should do without having a good understanding first.

Some of the pitfalls and mistakes could potentially destroy you financially!

That’s why I choose to invest in areas that provide BOTH a positive cash flow AND capital growth.

Think of the regular cash flow as a way of staying in the real estate game for the long term and the capital gain as a bonus when it comes.

Find out more about capital growth at:

http://www.RealEstateSecrets.com.au/aboutgrowth

Warm Regards

Hans Jakobi – Your Wealth Coach®
Real Estate Secrets