Negative Gearing VS Positive Gearing | How To Retire Early?

[@roberthiggins8234]

This is a great explanation. I have had many an argument with people that 'reducing tax' is not the goal. Sure reduce tax where you can, use tax deduction as a tool that might make a property go from a loss overall to a gain. But the goal isnt to reduce tax, the goal is to gain wealth. A positively geared property that also has better capital gains, is better than a negatively geared property without capital gains. So when deciding which property to buy and why, the overall change to wealth is the goal!

[@eddiifuentes9298]

Great explanation Ravi, especially for beginners of property investing. You would normally start your first as negative geared depending on LVR. But hopefully starts turning the other way in one or two years time 😊

[@asimrasheed2260]

Ravi I like the humour and I am super impressed the way you explained . Thumbs up

[@edwardzhao1680]

extremely helpful, followed and liked

[@boxman8957]

Negative gearing only good if you are getting taxed at 45%. Positive gearing only works at 70% or less LVR.

[@Grahamite]

None of the spruikers will tell you that 😂

[@alancotterell9207]

'Swindlers Anonymous' ?

[@2012daffyduck]

Isn't equity a function of your borrowing capacity? if I make 50k a year and I have 5M in equity - the bank won't let me tap into that 80% of the 5M equity. Maybe 600k but no more.

[@asimrasheed2260]

Good video

[@adamcjm]

Do you have clients who have bought a property through your services and used the equity to buy another property through your services?/ 😊

[@PersonalFinancewithRaviSharma]

Yeah plenty do exactly that. We have some case studies on our website :)

[@JoeyBlogs007]

Obviously depends on your gearing situation. If cash strapped, then you need positive geared property.

[@PersonalFinancewithRaviSharma]

Correct but, that's why one should think about the strategy before buying.

[@benjaminfrankliniii9857]

I remember going to a buyers agent in 2012 and he was giving me Perth properties and I laughed at him and no I'm crying I didn't listen to him lol

[@deezy9622]

Donut

[@PersonalFinancewithRaviSharma]

Crazy times hey. An opportunity doesn't feel like one and by the time it does, it's no longer an opportunity.

[@NoRegertsHere]

You’d only have just caught up to 2012 prices last year. They dropped 30% through 2014-2022

[@anth1839]

That's exactly rite they did nothing for a long long time. I sold a block of land 2 years ago before the boom there and lost money. Sometimes you win and I wish I could of kept it . But needed the money. That's life!

[@TemaAhmed-dd5wm]

I will be forever grateful to you, you changed my whole life and I will continue to preach on your behalf for the whole world to hear you saved me from huge financial debt with just a small investment, thank you Dorian j Townsend.

[@chookie131]

😂😂😂😂😂😂😂😂 scammers scammers scammers alert

[@reelchess]

Lmao the supply and demand hits close to home. So it wasn't just us that learnt that stuff in week 8 lmaoo.

[@PersonalFinancewithRaviSharma]

hahaha! Okay, I thought we were the only ones. This must mean there are more out there.

[@anthonysrebniak9349]

What about buying for cash

[@PersonalFinancewithRaviSharma]

I'm not sure I'd buy real estate 100% cash to be honest.

[@NoRegertsHere]

Rent pays marginal tax rate. Shares much better

[@changck007]

Less than ideal without the leverage. the upside is you do not have repayment stress. Just got one finance free and is due to settle in over 2 weeks. No need to worry about interest rate goes up or down or in or out.

[@roberthiggins8234]

Buying a house outright for cash is the 'safer' option. You are reducing your total gearing such that fluctuations in the market do not affect you as much. However typically investments go up, typically the higher you are geared (within reason) the more wealth you create.