Canna Campbell

You just have to wear it.

So it's not efficient anymore.

And there will be some people who don't care.

That still works for them.

They're not worried because it's all part of a long-term play.

So it still will exist, but it's going to be used and approached very, very differently.

So this is the exciting part.

It really boils down to you as the investor and your situation and what you're capable of doing and what you ultimately want to do.

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?