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What You Need to Know about Positively Geared Investment Properties
If you are thinking about building up a real estate investment portfolio, one of the concepts you need to familiarise yourself with is that of positively geared investment properties. For most investors, the best real estate portfolio will be dominated by positively geared properties. Read on to learn more about this real estate investment concept—and about how Strat Prop can help you master the concept with your portfolio.
What Is a Positively Geared Investment Property?
What exactly is a ‘positively geared investment property,’ and why is having this type of investments so important for your portfolio? Here are a few key details to help you understand how this idea works:
- Positively geared investment properties are positive cash flow investment properties. When investment experts say that something is ‘positively geared,’ what they mean is that the investment has a positive cash flow. A positive cash flow investment property is, in the most simplified of terms, an investment property that is delivering a profit monthly.
- This concept takes into account all expenses and income. Positive gearing in a real estate investing situation occurs when you are earning more from rental income each month than you are spending. The concept takes into account not just how much you are earning in rent from your current tenant(s), but also all your monthly expenses on the property. These expenses may include loan repayment, loan interest, property maintenance costs, property management expenses, property taxes and more.
- Negatively geared investment properties are worth considering but riskier. Positive cash flow investment properties appeal to most investors for one simple reason: they are consistently making money. Beyond the upfront investment of the property, you are earning more from rent than you are spending to hold the asset. This income stream can help you pay off the mortgage loan faster, finance other real estate investments and more. Negatively geared investment properties (those earning less in rent each month than the costs of ownership) are less immediately attractive but can still offer ROI in the form of long-term capital growth.
What Sets Strat Prop Apart Regarding Positively Geared Investment Properties?
At Strat Prop, we are an ideal partner for any investor looking for positive cash flow investments. Here’s what sets us apart in this regard:
- Our focus. We focus specifically on positive cash flow investment properties, which means our entire strategy is built upon this type of real estate investing. If your goal is to turn a quick and consistent profit with your investments, we are the ally you need.
- Our data. How do we find positively geared properties? We use comprehensive data analysis to find markets with tremendous growth potential, which tend to be where we find positive cash flow properties.
- Our long-view approach. Our goal is to help you establish a cash flow that you can use to grow your real estate investment portfolio and expand your wealth more quickly. If this outcome sounds appealing to you, give us a call.
Why Trust Strat Prop When Seeking Positive Cash Flow Investments?
At Strat Prop, we’re not just there to help you find a high-potential investment property. We also will help you do the due diligence necessary to ensure that a property is a smart buy. Let us secure the property on your behalf and provide quarterly performance reports to help you monitor your cash flow situation.
To learn more, contact us today.
