Positive cashflow or negative gearing?

Pretty much the number one question that everyone asks, and “experts” often back a philsophy and then stick with this line as the best (and only sensible way forward).

On a pure numbers basis, a high capital growth, low rental yield will over time perform better than a low capital growth, high rental yield property. But cash flow is critical and I remember a quote someone said to me ” the negative gearing strategy will ultimately make you wealthier if you don’t go broke along the way!”

I started with a mid range position and then went more on the capital growth focus.

As people are noting with the current rents and interest rates you can achieve the best of both worlds at the moment, but just remember that things WILL change so build this into your thinking and strategy.

Positive cashflow or negative gearing