Sadly that was one of my calls today.

 

‘Can I claim on my income protection plan ’ ?

 

Sadly No

 

Have you received a redundancy payout?

 

Again sadly no

 

Do you still have your investment property & is it cash flow negative

 

Sadly yes

 

But we get a good taxx refund

 

Ahm ?????

 

Sadly we have other cases that we know off where the property value due to the rent falling has meant the price it would get today is over 100,000 less than the debt on it.

 

Yes I am negative on so called investment property as at best when all paid off the NET rent is ~2%

 

This is not worth the risk for most.

 

Even when it is all paid off then a recent email which says

 

I am sorry I have to report today that the hot water cylinder has developed a leak – this is happening all over chch due to the chlorine in the water  they tell me.

I have had the plumber look at it today and it will have to be replaced.

This will happen tomorrow

Plumber texted – will need to remove false front of cupboard and put a s/s skinny cylinder in that can be converted to mains pressure in future.

He said it is 56 year young.....

I have asked the plumber to go ahead and sort.

Tenants will have no hot water until it is fixed.

 

Sadly even when all paid off when there is no Net income for that month or more then it is not an investment.

Reread ‘Rich Dad Poor Dad

 

Yes there are Approved alternatives to the near zero if not negative returns in Term Deposits available today.

Property related but not listed on the share market.

 

And let us not forget the buying & selling costs of ~5% of ‘investment property’.

 

It means you can turn your non performing funds into asset.

 

Contact me as there are approved solutions for your problem if you are comfortable with them..

 

Redundancy can & will come at anytime & what is the next step?

Plan R

 

John McAuliffe