Positive gearing is the holy grail of property investment.
Not only do positively geared properties produce an income after all expenses associated with the property have been paid (loans, fees etc.), most properties can also increase in value giving the investor the best of both worlds – Cash flow and capital growth.
While it can be harder to find positively geared properties, they are out there.
Another note to consider is that, while some properties may start out costing the property investor money or providing minimal or no return in the short term, once the loan starts to get paid down over time and the rental return starts increasing, the property can turn into a positively geared asset.
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This information is of a general nature only and does not take into account your objectives, financial situation or needs. We are not financial, legal or tax advisers. You should seek appropriate professional advice specific to you before acting on this information.
