Negative gearing: The future of property investment
Many worried investors have been asking me questions about the future of negative gearing, especially if Labor wins the next election. Although politicians are not always guided by common sense, there are many reasons why they should be careful when tinkering with it.
Do balanced investments deliver the best results?
The logic of spreading the risk by balancing or diversifying your properties is that if the values (or prospective values) of one of your properties slumps, good continued performance in the others will still give you an acceptable overall result. From this logic, you can see that it is uncertainty that urges us to diversify, not the surety of high returns, because if we were really sure about the outcome, there would be no logic in diversifying at all.
Auction market shows signs of life
CoreLogic reported preliminary auction results for this week, with 2,742 homes going under the hammer. This marked a slightly higher figure than the 2,701 auctions held the previous week.