03 February 2009 ~ 0 Comments

Property Investment vs. Negative Equity

Hey everyone,

I have learnt a great philosophy this week, one that I just had to share with you: ‘It is all about the cashflow’.

Now I know for the last few weeks, I have been harping on about going on a property course – well I have done it, and it was incredible!

I am actually shocked by how little I knew about the property market, which made the course all the more insightful.

Take negative equity for example. We have all got it at the moment. It is practically unavoidable. But what I discovered this weekend is that it doesn’t have to spell the end of the world. Yes it is a pain, and we would all rather not have to watch our properties fall in price, but it doesn’t have to spell the end of an investment. If anything it can lead to a more profitable future.

You see what it all comes down to is cash flow and whether or not your rental property is still generating a positive cash flow.

If it is, so what if your property is going into negative equity. As long as you have got the patience to wait, once the recession is over you can sit back and watch as your property once again experiences captial growth.

I think what many of us forgets is that we have been in a recession before. 1989, 1973, 1923… supposedly we even had a recession during the Roman Empire (wow!). So it is really nothing new to see this. It’s to be expected.

Any ways, I just wanted to pass this onto you, as it has personally given me a new view on my property investments.

Good Luck everyone.

Wendy xx

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