Does Negative Gearing Guarantee Capital Growth?
b'ARVE Error: Mode: lazyload not available (ARVE Pro not active?), switching to normal mode\\n\\n\\n\\n\\n\\n\\n\\n\\n{"@context":"http:\\\\/\\\\/schema.org\\\\/","@id":"https:\\\\/\\\\/onproperty.com.au\\\\/negative-gearing-guarantee-capital-growth\\\\/#arve-youtube-s1ru8uixnxg659a0b2e78b15257722530","type":"VideoObject","embedURL":"https:\\\\/\\\\/www.youtube-nocookie.com\\\\/embed\\\\/S1Ru8UIxNXg?feature=oembed&iv_load_policy=3&modestbranding=1&rel=0&autohide=1&playsinline=0&autoplay=0"}\\n\\n\\n\\nThere is this belief that negative geared properties grow while positive cashflow properties don\'t. But does negative gearing guarantee capital growth?\\n\\nThere\'s this belief out there in the world of property that negative geared properties grow in value or provide you with capital gains. Whereas positive cash flow properties don\'t grow in value and don\'t provide you with capital gains. So when it comes to investing, you either need to choose negative geared properties or you need to choose positive cash flow properties and you can\'t have the best of both worlds. So today, in this episode, I want to talk about whether or not negative geared properties are guaranteed to grow in value.\\n\\nHey, I\'m Ryan from onproperty.com.au, helping you find positive cash flow property. I\'ve just moved house, so if you\'re watching the video, you\'ll see a bunch of boxes beside me. So, sorry for that, but I didn\'t have time to unpack and wanted to get straight into it and talk to you guys.\\n\\nThis thought comes out of an email conversation I\'ve been having with one of the followers of On Property who\'s interested in a whole bunch of situations, but seems to have the belief that they can either invest in negative geared properties in order to get capital growth or they can invest in positive cash flow properties, but they\'ll need to forego the capital growth.\\n\\nI just want to tackle this topic and get you guys thinking about this as well. Do negative geared properties guarantee that you\'re going to get capital growth? Because a lot of people go to seminars. A lot of people read investment magazines or investment books and they\'ll come out of it thinking the best way to invest in property is to purchase negative geared property that\'s going to grow in value. But for some reason, in amongst that, they get the belief that says, "If I buy negative geared property, it\'s going to grow in value." which isn\'t exactly true. And the easiest way to debunk this myth is to just say, "Do you know of an example of a negative geared property that hasn\'t grown in value?" and I could give you a myriad of examples.\\n\\nEverywhere from my friend who purchased a new build property that 5 years later, still worth less than what he paid for it and was negative geared the majority of that time, to a whole bunch of investments that are being sold at the moment off the plan that are negative geared and probably are overpriced and won\'t grow in value, to my parents who purchased a negative geared unit in Cronulla in Sydney; which is within a capital city and they owned it \\u2013 I can\'t remember how many years they owned it, but it didn\'t grow in value by the time they sold it. I can think of many examples in my life where I\'ve seen that negative geared properties don\'t grow in value.\\n\\nWe also want to look at the other side of the coin, is that the belief that positive cash flow properties don\'t grow in value. Again, I\'ve seen many examples of positive cash flow properties that have grown in value. I go out, I find a new positive cash flow property every single day. And because I do this so often, sometimes you see the same properties come around or you see the same areas and you see how much they\'ve gone up in value. So, I can say, with certainty, that there are properties out there that have grown in value.\\n\\nEven, I think it was probably like a year or 18 months ago, that I listed a positive cash flow property in Western Sydney that had a granny flat attached to it. And we all know what has happened to the Sydney market in the la...'