positive_gearingPositive Geared Properties

Positively geared properties are investment properties that generate income for you from the first day. Negatively geared properties, on the other hand, require investors to contributed to the property’s operating expenses, either from partial mortgage repayments, repairs and maintenance or council rates and fees.

It is definitely a challenge to secure positive cash flow properties, but it is possible.

One of the major benefits of securing a positively geared investment property is the flexibility for you to acquire further properties without needed additional cash to fund these investments.

Strategies for finding positive geared properties:

  1. New properties where depreciation benefits are available in the early years
  2. Properties with high rental returns
  3. Sufficient rental returns to over all outgoing expenses (borrowing costs, rates, body corporate fees etc.)
  4. Invest with larger cash deposits to reduce loan fees

 

As with all investments, it is advisable to consult investment property specialists for advice to suit your personal circumstances.

For more information contact I-Sale Property on which investment properties may be suitable for you.