Strategy #1 – Always Buy for Positive Cashflow
Don’t worry about negative gearing and all of these complicated techniques that get thrown around.
The key to success in property investing is to keep it simple.
Your goal is to always invest for positive cashflow. And here’s why.
Positive cashflow puts money in your pocket as soon as you take on a tenant.
That cash goes towards building equity, and increasing your serviceability.
This is a critical step towards increasing your ability to build your portfolio. .
Cashflow increases your serviceability.
When lenders look at your application, they’re going to see that you have actually increased your annual income, which in turn means you’re less of a risk, and increases your borrowing capacity.
That means less time spent going back and forward with lenders.
Plus, you don’t have to waste time on complex strategies that don’t put money in your pocket.
After all… who wants to buy a liability??