Positively Geared vs Negatively Geared Property
Thursday, September 17, 2015 / Property Finance, Property Investment
The terms positive and negative geared property are used frequently in property investment but what do they really mean and how do they impact you as the investor? Positively Geared Property: Positive gearing occurs when the rent you’re receiving from your tenants is more than what you are paying to hold the property including costs such as mortgage repayments, insurances, property maintenance and council rates. This tends to occur in locations where rental yields are strong and interest rates are low. It can also occur on investments that have been held for a number of years where the interest rate…
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