Investors are turning to POSITIVE gearing

Flat property prices are putting at risk the strategy of “negative gearing”. Another model for property investors is positive gearing where the rent covers the costs and the property produces an income.

Several property experts advise investors to buy in regional centres with good growth prospects where the rent is higher than the costs.

Laura Menschik, a financial planner says a negative gearing strategy has higher risks, including that investors could lose their jobs or there is a marriage break-up and they will be forced to sell.
Source: The Age

Advertisement