Positively geared properties are rental properties that have higher rental income than they do rental expenses. Real estate investors with positively geared properties have money left after paying costs associated with owning and managing their rental properties.
Positive gearing deals with properties before and after-tax is considered. You can also find the best positively geared property via https:/
Image Source: Google
1. Is It the Same as Positive Cash Flow?
The answer to this question is both yes and no. Positive gearing and positive cash flow tend to be used similarly in Sydney real estate, although positive cash flow is the much more common term.
As previously mentioned, a positively geared property profits real estate investors by producing more in rental income than in expenses. Both positive cash flow and positively geared mean much of the same in Australian real estate.
2. Importance of Positive Gearing
There are two main reasons why a positively geared property is important for real estate investors. For starters, having a positive cash flow property means that the investment is lucrative and paying itself off. Investors truly make money in real estate investing with positive cash flow properties.
Positive gearing also helps real estate investors when buying an investment property. Since properties with higher positive cash flows are better real estate investments, investors can compare properties by their cash flow to narrow down choices.