10 Mar 2022

Positive Geared Investment: Why Purchase It?

Positive Geared Investment

The data for the state of real estate in Australia continues rolling in. Most homebuyers know that the price of real estate continues to rise. Some may find it surprising that an estimated 20% of homeowners also own an investment property. Plus, the country has several individuals who invest in Australian real estate professionally.

Investment properties either make money or they lose it. When a property nets the owner a profit, it becomes a positive geared investment. The income stream the property delivers pays for the home loan, maintenance costs, and other fees. Plus, there is enough income leftover for the owner to reinvest or enjoy.

Some professional investors seek to net a profit. However, they also seek to lower it. The higher the profit, the higher the tax bill becomes. To fend off a high tax bill, investors employ accounting techniques that find deductions. Plus, the Australian government places loopholes in its tax policy too. The public sector partners with the private sector to help provide services. In terms of real estate, the partnership ensures that new homes are built annually. Plus, professionals help maintain properties that require renovations. No shortage of opportunities exists in the Australian housing market.

Positive Geared Investment Conclusion

A positive geared investment nets a profit for the investor. This is good news. Some investors use additional strategies to net a profit and keep their tax bills low. Mortgage House helps investors find the financing that allows them to expand their portfolios. Contact our loan specialists today.

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