NEW

Apartment Block – OR – Gigantic Dual Living House

7 4 4 Have you got a ‘Brady Bunch’ family? Are Mum and Dad living with you? If either of these are true, this is the house for you. If you’re up for dual occupancy as an investment strategy, this works as well. 4 Bathrooms – nearly one each 4 car remote garage – The...

What’s Your Property Negotiation Strategy?

Are you aware of how selling agents tie you to an inflated price for your new property? Negotiating for your new property, be it investment or your own home, isn’t just something that you jump into when you’re suddenly at the negotiation table.Negotiation is a learned...

Are You Positive that You’re Negative?

Jehoshaphat, “Negative gearing is the best property investment strategy”. Geraldine, “Are you positive?” Jehoshaphat, "Huh???" OK, so we’ve all heard about positive and negative gearing with regard to property investment. But which one is the best strategy? Put...

To Be or Not To Be……….a Rent-vestor.

It seems it was easier back in the olden days. Remember back when you were a kid? More to the point, remember back when I was a kid, back in the 60s and 70s. You either rented or you bought your own home. It seemed that there were only the privileged few who could...

5 Bedroom Brand New Near Elite Schools and Walk to the CBD

52 2The selling agent has made this property is available for PPBA to buy for you. Elevated position, literately brand new, yet retaining the classy Colonial look is this colossal 5 bedroom residence mere walking distance to CBD and surrounded by a number of the best...

If It Seems Too Good To Be True, It Usually Is!

Often forgotten words, but at the heart of the ‘get rich quick’ schemes is this well-known assertion. When was the last time you saw a ‘wealth coach’ spruiking the benefits of some new real estate wealth scheme? Last time you looked at your email inbox or your...

Post COVID-19 Lending – What to Expect

Have you ever walked into a bank with a mask on? I heard a bloke named Dillinger tried it. Didn’t go well for him! However, with the onset of COVID-19, banks have changed not only the way they interact with their customers, but also the lending process. Furthermore,...

If you’re a buyer, ‘gloomy’ is GREAT!!

How has COVID-19 Been Good for You? The property forecast at the start of Covid-19, back in Feb-Mar was gloomy. If you’re a buyer, ‘gloomy’ is GREAT!! Let’s face it, if you were actually struck down with COVID-19, that’s not good for anyone. There are some people who...

Don’t Worry! You’re Not the Only One.

Is it lack of knowledge, don’t know where to start or just plain fear? We all know that it’s something that we need to be doing, otherwise we wouldn’t be here right now. What is it exactly then that’s holding you up? That’s the very first step you need to take to get...

If Nothing Changes, Nothing Changes!

How many “property experts” do you know? Friends, family and workmates who all know the best property to buy, the best location and the best strategies. There are plenty of them and they are all ready and very willing to give you their advice. Here’s the best way to...
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Negative Gearing

Negatively geared property is used as a growth strategy. In areas where good capital growth is acquired it is difficult to find rental income that covers property ownership costs. In this respect, the amount of money to hold the property needs to come from elsewhere, usually your pocket.

Negatively geared properties can become positively geared over the longer term by means such as paying down the mortgage in time, possibly decreasing the payment amount with refinancing, rents increase over time increasing income or you provide a larger deposit decreasing the borrowed amount. These are however usually longer-term options.

The main goal with negatively geared property is that it is in a high growth area and will increase significantly in value over time. When considering this strategy, particular attention must be paid to Capital Gains Tax on sale as this can be a significant amount.

If your portfolio overall is highly positive geared, a negatively geared property can be used to balance the tax effect on earnings, thereby providing not only tax incentives, but a property with good growth prospects.

Positive and negative geared properties used in the union are a very effective strategy.

Home Ownership

Buy and Hold

Negative Gearing

Positive Gearing

Renovation or Flipping

Passive Property Development

Active Property Development

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