Should I use extra cash to close the shortfall on an investment property or should I put it in an ETF?

I'm in SA and I can get an investment property which is running at a deficit, albeit a small one. Should I use monthly extra cash to close the shortfall or should I invest in ETF's with a higher rate of return than the interest rate?

Thanks

Additional Information:
added one year ago

Should I use extra cash to close the shortfall on an investment property or should I put it in an ETF?

I'm in South Africa and I can get an investment property which is running at a deficit, albeit a small one. Should I use monthly extra cash to close the shortfall or should I invest in ETF's with a higher rate of return than the interest rate?

Answers

EthanR answered a question in Personal Finance.
4085 points

EthanR answered one year ago …

I'm not sure where SA is (San Antonio?), but why would you want to buy an investment property which is running at a deficit, when there are so many out there that can be purchased which have positive returns (aka "cash flow")? I would say to either buy the ETF, or look for another property that will perform better for you.

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7million7years answered a question in Personal Finance.
699 points

7million7years answered one year ago …

I differ a little: only buy either if your outlook is 10+ years ... otherwise, save up until you can buy an investment property that cashflows positive.

I agree with EthanR, although I have bought 'deficit properties' and made a bucketload from appreciation ... but, who wants to throw away cash, when I probably could have done the same starting with a property that produced - instead of sucked - cash?

If you don't, then you aren't really investing in cashflow, you are SPECULATING on future appreciation
... guess that's what I was doing with some of my early ones! :)

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