If you are wondering whether or not property as an investment is a good choice for you, this piece of writing will help you to decide. Here, you'll get an overview of the key points of property investing and learn how positive gearing can still make it a lucrative investment.
What are Negative Gearing and Positive Gearing?
Negative gearing is when you borrow money to invest in property and the interest on the loan is tax deductible. This means that the overall cost of your property investment is less than the amount of the loan you have taken out, which can make your property investment more profitable.
Positive gearing is when you invest in property with the intention of making a profit, and the interest on the loan is not tax deductible. To know more about negative and positive gearing strategies navigate to this website.
Few Thing About Positively Geared Property
When it comes to property investing, there are a few things to keep in mind. Some of these include budgeting properly, researching the market, and being positively geared.
A positively geared property is one that has been correctly priced for its market location and features the right amount of features for the current market. However, there are a few things to watch out for when investing in a positively geared property. The main thing is whether or not the property is overpriced. This can be easy to do if the property is not located in a good area and doesn’t have any special features.