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Is it a bubble or is it stagnation? As far as i am concerned, if i can buy an asset with debt that pays itself off then that is a good deal providing:
1. The asset maintains or gains value
2. The income the asset produces is going to increase in time

So one then has to look at the asset and if conditions 1 and 2 are going to be met.

Positive gearing means that it now becomes like any other asset/business purchase as opposed to having to negative gear and hope for capital appreciation

[QUOTE="prawn_86, post: 731956, member: 8739"] Is it a bubble or is it stagnation? As far as i am concerned, if i can buy an asset with debt that pays itself off then that is a good deal providing: 1. The asset maintains or gains value 2. The income the asset produces is going to increase in time So one then has to look at the asset and if conditions 1 and 2 are going to be met. Positive gearing means that it now becomes like any other asset/business purchase as opposed to having to negative gear and hope for capital appreciation [/QUOTE]

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