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...

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...

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.