Short answer: Evil.

The reality is that 99% (my admittly random estimate) of properties in Australia are negatively geared if you take out a 90% mortgage on them, and by there very nature they require you to ‘chip in’ every week to top them up. Now the question is how many $200 per week negatively geared properties can your cashflow handle? You see negative gearing is a dead end street. There is a brick wall at the end called ‘you running out of disposible income’. But the good news is that 1% of properties have high enough rent to cover themselves with a 90% loan. So if there is say 10 million dwellings in Australia, there could be 100,000 potentially positively geared properties of which there could be 1000 for sale at any one time. How many do you personally need?

There is no reason why you have to settle for the other 99%. Be fussy.

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