Quote:
Originally Posted by Waimate01
Debt .... bad (but sometimes handy for very short periods)
Net Worth .... good.
Negative gearing .... loss making - bad.
Positive gearing .... cash making - good.
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I think that's an over simplistic view of things.
Debt used to buy anything other than investment assets = bad
Negative gearing = bad only if you aren't making enough growth on average over time to more than cover the holding costs
Net Worth = meaningless
Equity = useful but can be difficult to buy food with
Cashflow = good and important, but usually not very tax effective on its own
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Sim'
This is a general comment only and does not constitute advice. Before making financial decisions you should seek advice from a professional adviser, who can take into account your specific circumstances and investment goals.
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