Just Answers - Real Estate

Positive, Neutral and Negative Gearing is confusing for some.

Positive Gearing is when the property is bringing in more money than what is going out. Neutral Gearing is when money coming

According to USFDA, a combination product is one composed of any combination of a drug and device; biological product and device; drug and biological product

in, is the same as what's going out (you can also have a negative geared property but with the tax advantages from the investment can make it Neutrally geared. Negative Gearing is where

; or drug, device, and biological product and fixed dose combination would include two or more combinations of drug.

Examples of combination products may in

money coming from the Investment and tax advantages is less that what is going out.

Remember - you can also have a Negative Geared Property giving you a positive Cash Flow.

For Example

lude drug-coated devices, drugs packaged with delivery devices in medical kits, and drugs and devices packaged separately but intended to be used together.

:
Lets say you have an Investment Property worth $250,000 at 7.5% Interest Rate

= $18,750 per year
Rental Return 6% = $15,000 per year

_______________

-$3,750 short fall

But, d

here is enormous increase in the number of combination products entering the market in the recent years. Combination products have proven advantages but fixe

ue to expenses, depreciation of the building and internal fittings and fixtures that I can be claimed against income tax, I can reduce my personal tax by (for this example), $4,000 for t

d dose combinations are still in the process of convincing regulatory authority on their advantages over the single ingredient formulations.

Combination pro

he first year.

- $3,750 short fall

$4,000 tax return

______________

$ +250 positive cash flow

I'm making a whopping $4.80 per week! Not much, is it? So you must first know what it is

ucts have become life saving products for the pharmaceutical companies who doesn’t have many innovative molecules in their product pipeline and have been inc

that you want in your Portfolio.

Have you ever thought to yourself- Why do Investors use Positive Cash Flow?

More than likely it is due to low capital growth and the rent increasing faster

easingly used in the product life cycle management. Even the companies having product patents are trying to extend their product life cycle through the combi

than the property value itself.

I'll give you an example. Let's use the property mentioned above but use Positive Gearing. I'm now going to put that property in a high capital growth a

nation products and maximize the revenues. But the companies involved in this practice are overlooking that they are burdening the patients both economically

rea.

In the same year the investment property value increases from $250,000 to an amazing $320,000. You can't go to the tenant and say, My property is now worth more money, pay me more

and physically. They need to rightly judge the benefits of the combination products and they have to even look at the risks involved when combining the produ

rent!

That doesn't work!

If you tried it you'd probably be without a tenant!

With investment properties, you must always remember cash flow. Don't fall into the trap of asking for higher

ts. Some of the combination products were well accepted by physicians while others suffered. Companies involved in development of combination products are fi

rent and having no-one wanting to rent your investment property!

Let's continue.
The property is now worth $320,000
$320,000 at 7.5% Interest Rate =$24,000 per year
Rental

ding difficulty in defining their combination products and facing various challenges from selecting a combination to marketing it.

Following aspects would a

Return 4.7% =$15,040 per year
Tax return claim =$ 4,000 first year
_______________
-$4,960 my short fall for this year.

So now this property will now cost you approx $95 per

dd to the challenges in developing combination products:

Which markets to tap where the combination products can do fairly well?
Which combination prod

week

Remember - negative geared properties will give you much more money in equity which you can use for your retirement or to purchase more investments.

I personally have all negative

cts are meaningful and rational?
Which therapeutic categories to select?
Which Combinations can address unmet needs of the patients?
Do combin

geared properties in high capital growth areas. These properties are starting to be neutrally geared due to rent going up over the years and offcourse with inflation.

What I will also s

tions increase the patient compliance?
What would be the developing cost?
How to tackle the risks encountered during combination product developmen

ay is, that it all depends on your Comfortability, lifestyle and living expenses and your Cashflow.

When I sit with a client they understand where I'm coming from. We cover comfortabili

t?

As combination products don't fit into the traditional categories of drugs, medical devices, or biological products, the USFDA is in the process of devel

ty, lifestyle and living expenses and then work on what will best suit their personal cash flow. I believe this is to be the most important part of Property Investment. So dont worry too mu

ping new procedures for reviewing their safety, efficacy and quality.

Professional from academic institutions, pharmaceutical industries, health care indust

ch if you should use Positive, Neutral and Negative Gearing.

I show them how property investment works, but you must ask yourself is it for you?
You must answer these questions;
D

y and representatives from various regulatory agencies are working out to design the regulatory requirements for manufacture and sale of combination products

oes your Cashflow allow you to invest?
Does it work in with your goals in life?
What are you doing now for building Wealth?
What have you changed financially to start moving a

.

As there is an increasing trend of the combination products companies manufacturing such products should be able to tackle the problems involved in the de

head with your future?

Sign Up & Get Your FREE 20 Page Report and Weekly Property Tips.

http://www.npis.com.a

elopment. They need to be wiser in analyzing the market trends and the regulatory requirements.

Companies that provide selfless information through particip

u/investment-property-signup.html

Kind Regards

Mr. Dino F. Livanidis,
0418-872280,
dino@npis.com.au,
www.npis.com.au

tion in industry events and feedback to regulatory authorities would be able to face the challenges and will be successful in developing combination products

Sales success is available. It's out there for you. The only question is whether you would rather try to make your own water or turn on the faucet.

Capital budgeting is a process of planning expenditures incurred on assets whose cash flow is expected to range beyond one year. In other words, it is defined as a process that requires planning for setting up budgets on projects expected to have long-term implications. It can be used for processes such as the purchase of new equipment or launching of a new product in the market. Businesses prefer to intricately study a project before taking it on, as it has a great impact on the company’s financial performance.

Payday loans can be a valuable financial lifeline, but if used unwisely they can be a very difficult trap to escape from. Find out why you should think carefully about alternatives before taking out a loan.

Tags

Links

Just Answers - Positive, Neutral and Negative Gearing

Related Articles: