Principal Residence also great investment in Australia
Posted by John T. Reed on
Here is an email I got from an Australian reader regarding my new book An American Principal Residence is the Most Advantaged Investment on Earth: Maximize Yours. Maybe the title should have bee American or an Australian Principal Residence.
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Thank you John. I have many of your books. I live in Australia and went down the path of owning many rental properties due to a peculiar tax allowance called negative gearing here but the negative Cashflow nearly killed me. I should have stuck to owning one Principal property only and read about the Sydney primary school teachers who decided on a deliberate strategy of owning only one principal residence at a time aiming to end up on Sydney harbour after 25 years. The Federal tax law was hugely beneficial to this strategy. You have come to the same conclusion after investing for 50 years and for me it has been 33 years. Now I own only a $4m property in a premium suburb(not debt free) in Melbourne and trying to pay the debt off after coming to my senses. If I only followed this strategy from the beginning I would be owning a $10 million property by now but better late than never!
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Thank you John. I have many of your books. I live in Australia and went down the path of owning many rental properties due to a peculiar tax allowance called negative gearing here but the negative Cashflow nearly killed me. I should have stuck to owning one Principal property only and read about the Sydney primary school teachers who decided on a deliberate strategy of owning only one principal residence at a time aiming to end up on Sydney harbour after 25 years. The Federal tax law was hugely beneficial to this strategy. You have come to the same conclusion after investing for 50 years and for me it has been 33 years. Now I own only a $4m property in a premium suburb(not debt free) in Melbourne and trying to pay the debt off after coming to my senses. If I only followed this strategy from the beginning I would be owning a $10 million property by now but better late than never!
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