Watch this before buying a renal - the property investor you don't want to be

[Rosco]

[Rosco]

This video has had over 2000 views over the weekend on our facebook page. If you are looking at buying a rental, or looking to encourage your friends or family into property, it would be worth a watch!

Ross

[fuzzlevalve]

Rosco I don't understand one thing. You say no cash flow no good but when property increase in value so fast does it really matter about cash flow?

[Rosco]

Rosco I don't understand one thing. You say no cash flow no good but when property increase in value so fast does it really matter about cash flow?

What happens if properties don't increase in value for the next 5-7 years? What happens if they go down in value?

Also if you buy negative cashflow properties, generally you have issues with servicing and getting more loans (more properties). I have just recently seen two or three posts like this on forums. This is an issue for them, even though property has jumped in value over the last few years.

Bad cashflow can be OK if you have a plan to change it within say 5 years. Twist, inheritance, paying down large debt etc

Ross

[fuzzlevalve]

OK thank you. When I look at history in Auckland prices going up decade after decade. But I understand now.

[Rosco]

Lots of people make lots from capital gain. But also lots lose lots of money from capital losses too!