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Thinking of investing in property, but not sure where to start?Property investment is a popular national pastime, with some 2 million Aussies calling themselves landlords and residential real...
A positively geared property is an investment that brings in more income than the expenses associated with owning it.
A positively geared property is an investment that brings in more income than the expenses associated with owning it. In other words, the rent you receive from tenants is higher than the mortgage repayments, maintenance costs, and other expenses related to the property. This means you make a profit each month.
As an income generating asset, you will need to pay taxes on the profits made on your positively geared investment property. With this said, you can deduct certain expenses related to the property, such as mortgage interest and maintenance costs when calculating the taxable income.
Put simply, a positively geared property earns more rental income than the expenses of owning it, so you make a profit each month. On the other hand, a negatively geared property earns less rental income than the expenses, so you make a loss each month.
Compare your property to recent sales in the area to get a current market estimate.
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