I on page 3 now and as I start to read the section "Just What I Was Looking For" I see where I went wrong in the 80's, 90's and early 2000. I was getting myself in assets that were laden with negative debt.
Instead of buying properties that would give me a positive cash flow I had started to buy houses that made a loss for me so I could offset the losses against any profits I made in my restaurant business.
Just imagine now if you were running a traditional business and made a loss year in and year out for the next 20 years. Would you stay in business?
How many houses run at losses can you sustain against the tax you pay. Maybe one, maybe 2 or maybe three investment properties. Because there is only so much income you can make in a week or a month or a year. And that tax is more or less fixed. There will come a time when the tx you pay cannot be offset any more against any more homes as your borrowing capacity would be at the limits. The banks may not len you any more as you will be a high risk to them.
In case interest rates get higher you may stand to lose a part of or even the entire property portfolio.
This is the rat race we get into as we finish college and enter the working life awaiting us. The focus is to get a home in Brisbane Australia and then start to look at an investment home. Most families in Brisbane would be lucky to get one maybe 2 investment homes if they had planned everything well and nothing went wrong financially.
But most people fail to plan. Its not that they had planned to fail.
If you are looking for a way to start making extra income with the possibility to earn more so that you can save more and get ahead, escape the Rat Race as Robert Kiyosaki says in Rich Dad Poor Dad then CLICK Here!