Business and Management

What Is Better Positive Or Negative Geared Property Investment?

When you decide to invest in a property you must first figure out your investment plan and decide if it's better to invest in a property that is positively geared or a property that is negatively geared. Each investor is not exactly the same, and therefore there are different strategies that be a hit with all investors. For getting a profitable property investment strategy, you can hire a property consultant via

property investment strategy

Sometimes, you'll find that one strategy is more effective for the majority of people, and one strategy works only for a few individuals. Which is the better option? Do you think positive cash flow is the best investment strategy or is a property that is negative-geared the better option? The answer (unfortunately) will be that it is dependent. 

However, there are certain advantages to each of the strategies for investing and You can read about them in the following paragraphs.

1. Positive Cash Flow Result in Passive Income: This is a source of income that you don't have to be working to earn and could eventually live on. It could help you pay off additional loans, buy additional properties or totally finance your lifestyle.

2. Negative Gearing Could Give You More Capital Growth: Negative gearing is not a guarantee of significant growth in properties. Properties that are gearing up can yield great growth, and the more properties you own, the greater growth you'll see.

3. Each Has a Different Exit Methodology: Negative gearing provides the option of selling your property after it has grown in value and then living on the proceeds. Positive gearing allows you to maintain the property and enjoy the passive income it earns. Each has a distinct exit strategy.