Canna Campbell

If you have a property that's negatively geared and you can obviously start working on that strategy to pay it down yourself, you can start making extra payments to create more equity in that loan, pay down the loan so that more and more of the rent that's coming in isn't just servicing the interest, it's starting to actually pay down the principal.

That's when we say it's cash flow positive.

or at the very least cash flow neutral.

So that is when the rent coming in equals the cost of the interest.

So that property that's rented out for $50,000 a year, I start slowly chipping away at that million dollar loan, for example.

The cost of that interest is no longer $70,000.

It's say $50,000.

It's breaking even.

That is what I'm talking about here has been cash flow neutral.

If I want to make it cash flow positive, obviously I need to keep chipping away at

Now, how long that takes or how much money that's going to involve is obviously boils down to what's the size of the loan?

What's the interest you're paying?

What's the terms and conditions?

Is it a 25-year loan?

Is it a 30-year loan?

Is it principal and interest?

All these sorts of things come in.

And this is where the big thing with these huge changes is more than ever before, people are going to be leaning on interest.

financial planners, accountants, and mortgage brokers for really good quality advice as to what to do.

And it's not going to be set and forget.