Margaret Lomas believes investing in property using negative gearing (where your outgoings are higher than your income) is the same as spending a dollar to save 47 cents. In other words, it doesn't make sense. While the lure of capital gains to offset your losses is tempting, what happens if those never materialise?

In this book she has produced a step by step guide to property buying that takes the hard work out of investing and will ensure you don't fall into the traps of poor decision making.

"It will keep you from getting caught up with the emotions of buying property and help to ensure you truly use a commercial head when making choices" Lomas says.

The book includes a series of worksheets and checklists to complete for each property you buy as well as access to download investment analysis software.

There is a worksheet to calculate what amount you can afford to invest, a checklist to ensure you undertake the necessary research and get the background information necessary to making a sound investment decision. There is also a worksheet to establish your personal risk profile, an area often overlooked by people before they expose themselves to the potential downsides of any investment decision.

The NEW ZEALAND version of the free software is now available online.

Margaret says:

"Actually, you would need an extremely large pocket to fit this book in - once I started writing it, I just couldn’t stop! The reference to ‘pocket guide’ is more about how to use it than it is about its size. After having written the other three books, many readers told of how they were full of great information that they then needed to disseminate into a process they could follow.

So, I decided to do this for them. ‘A Pocket Guide’ is not an educational book, as such. Rather, it is a process guide. It relies on the fact that you have already gained the knowledge from reading the other books and it gives you a step by step guide for the actual buying process. Each chapter is a new step and once you have read the entire book you will own a property.

I use it myself every time I make a new purchase, just to make sure that I do not miss any steps. A Pocket Guide to Investing in Positive Cash Flow Property contains formulas, calculators, things to photocopy for your bank and lawyer, and a checklist at the end of each step to make sure you have completed the step fully.

Again, it will not teach you new information - it will simply organise the information you do have into a logical step by step plan. You will need to read one of the first two books before getting to ‘A Pocket Guide’."

Originally from Perth, Lomas lives on the Central NSW Coast, she has five children and runs her own financial advisory business called Destiny Financial Solutions, with offices in Perth, Melbourne and NSW. Lomas was the 2006 NSW Telstra Businesswoman of the Year and is a regular commentator in the national media on real estate and financial planning.

Published: 2004