$9 billion in negative gearing. 7.25% cash rate. Absolute mayhem and pandemonium.

And the Ashes was reclaimed by Australia.

That was the state of affairs back in 2007-08. Do you remember that? It was an insane, rocky,  and unprecedented time to be an investor. No one had ever seen anything like it before.

For context. The cash rate fell to an all time low of 0.1% in 2020, and the cost of negative gearing fell to $166.5 million in 2019-20.

But 15 years on (time flies man…), we’re facing similar circumstances. And for some reason, the media and property ‘experts’ are waving their white flags, and giving up.

Hogwash, I say.

Because the investors who were smart, clinical, and unemotional…

The ones who didn’t listen to the mainstream back in the mid 2000’s…

Well, imagine how good they’re doing now?

Even with a dip in the market, their portfolio is still miles ahead of what it was back when they first bought. They all bought when the cash rate was at 7.25%. How did they do it? Negative gearing.

Negative gearing is the answer, even during high mortgage and interest rates. It’s a win-win situation.

On one hand, interest rates are climbing back up, scaring off a lot of people. Which means you can take advantage of massive drops in prices. And on the other hand, you can take advantage of negative gearing, offsetting the higher interest rates anyways. This will ultimately put you in a position where you’ve bought low, and in the future, sell high.

Much higher. For context, the median price of a house in Sydney in 2007 was $512,300. In 2021, it was $1,310,000.Some food for thought.

House prices ALWAYS go back up.

According to the RBA, “Over the past 30 years, Australian housing prices have increased on average by 7.25% per year”.