We’ve got Covid, a recession and had lockdown all over the place, but property remains strong and seemingly getting stronger?We all remember the dire predictions in the press this time last year with most property pundits espousing everything up to a total collapse of...

How Many Property Booms Have You Missed So Far?

You can count them on this graph.Personally, I haven’t missed any since 1998. Can you guess why that is? The reason is because I bought my first property in 1998, so I’ve had my toe in the water ever since then. Sure, there have been a couple of slower periods in that...

How Fast is Your Dream Slipping……Ahh…..Powering Away From You?

Have you been keeping a close eye on the market lately? Haven’t we all! It’s hard to believe some of the crazy things going on at the moment. This makes it all the more important to take action so you don’t see your dreams like you see a jet fighter…………disappearing...

Perfect Urban 5 Bed Oasis

522Have 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. The original home as a renovated self contained granny flat ...

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...

Positive Gearing

Generally speaking, positive gearing as a strategy is used specifically to generate revenue. Whilst the property may also increase in value over time, this is not necessarily the main aim of the investment. It does however make a very handy benefit to this type of strategy.

One of the most significant advantages of this strategy is that the rental income pays for the entire costs of owning the property. Extra income can therefore be used to pay down the mortgage, to reinvest in the property by way of capital improvements or for you to use to live on or improve your lifestyle. With enough of this type of investment, your oceangoing cruiser, or that classic HSV Club Sport might be looking good.

Some investors consider this type of investment as a poor option since it does not provide tax incentives. The opposite applies in fact. This type of investment requires you to pay tax on the income earned. However, any good property accountant can advise you on ways to minimise tax.

At PPBA, this is a preferred investment option. We consider that if you are paying tax, you are earning money. Negative geared property must lose money to earn tax incentives and growth.