What is so good about the positively geared property? There are a lot of good things about this type of property and in this article, I am going to tell you why they are good.
Positively geared properties can generate you a passive income. This is because they generate more in income than they cost in expenses. You can also choose from the negative gear or positive gear as a strategy through various online sources.
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Income Goes Up Over Time
Rent almost always goes up over time, but your one major expense, your mortgage repayment stays the same.
So you can either have more money in your pocket every month or you can pay off the loan of the property quicker. This means that over time it gets easier and easier to pay for the property.
There Can Be Less Risk
There can be less risk when you invest in positively geared properties because you are earning income from day one.
With negatively geared properties you lose money every month and you have to sell for a profit if you want to make that money back. However, if the property doesn't go up in value then you can lose a lot of money.
With positive cash flow properties, you make money from day one! This means even if your property doesn't go up in value you can still make money through your rental income.
So this can be less risky because there are two ways you can make money (rental income and capital gains) instead of only one way.