Tag Archives: property investment

What Is The Best Thing About The Property With Positive Gearing?

There are many positive aspects of a positively geared property like you could generate a passive income. It is because you make more revenue than you spend on expenses. Also, the amount you pay for rent is greater than the costs you must pay (e.g. mortgage, maintenance, etc). If you have done enough positive gearing property investment, you could eventually take a break from your job and earn the money from your properties.

positively geared property

If you decide to invest in properties with negative gearing, they cost you money each month to maintain. You can then leave the job you are in and live on the profits from these properties as you will need the earnings from your job just to pay for these properties. 

Here are some benefits of positively geared properties:

Revenue Increases Over Time

Rent almost always increases over time, but you have big expenses, and mortgage payments stay the same. This means you will make more money with an increase in rent, but your costs will not increase significantly. This way you have more money in your pocket each month or you can pay off the loan on the property faster. This means that paying for the property will become easier over time.

There may be less risk

With positive cash flow characteristics, you will be making money from day one! This means that even if your property doesn't become more expensive, you can still earn money on your rental income. So it can be less risky because you have two ways to make money (rent income and capital gains) instead of just one.