Benefits of positively geared investment property

The reason why positive cash flow landlords choose to invest in these types of assets is fairly clear: they pay for themselves, so the ongoing cost to the property owner is mitigated.

Positive cash flow properties generate an instant return, which means you’re making a real cash profit from your investment from the moment you own it. To get more details about the positively geared investment you may see it here https://panvest.com.au/strategies/negative-vs-positive-geared-strategy.

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Moreover, if you purchase a positive cash flow property in a growth area, you’ll get the benefit of both capital growth and positive cash flow.

That is, you’ll be earning money twice: once from the rental return, and a second time from the capital growth, which pushes the value of the home or apartment up each year.

All of this is from an asset that doesn’t force you to put your hand in your own pocket to pay for running expenses every month.

At this point, it should be noted that there is a slight difference between a positive cash flow property and a positively geared property.

A positive cash flow property is one that generates a positive (or surplus) return from day one, regardless of your tax situation.

A positively geared property is one that may not pay for itself initially, but once tax deductions and depreciation is factored in, the asset more than pays for itself.

Either way, if you invest in a positive property, it means you are investing in a piece of real estate that is ultimately self-funding and returning a profit to you as the owner from day one.