Negative VS Positive Gearing Your Property Investment

Ever since the housing demand started increasing at a rapid pace in Australia, it became very important for property owners to focus on positive and negative gearing investments of their property. It all depends on a person’s total income who owns a property or two in Australia. Whether you want to maintain a positive cash flow or put more focus on capital growth, it is up to your property and how you take care of it.

Positive gearing is more beneficial versus negative gearing is more beneficial is a debate that still needs to reach a conclusion. It remains unsettled which option is better for earning passive income. However, one thing that is certain is the fact that this decision is entirely based on the property investor’s earning goals. The location of your investment property matters a lot in both cases.

Negative Gearing Your Property Investment VS Positive Gearing Your Property Investment?

Let’s just assume that you own two or more properties in Australia that are not under your use but you have the ownership. You do not need to precisely generate the passive income as such because you earn enough with your job hence you end up paying more expenses on your properties as compared to the rental income you receive. This is called negative gearing. If you pay more expenses such as taxes, loan repayments, management fees, maintenance, etc. than you earn, your properties just might be negatively geared.

This is not such a bad thing because the major advantage of a negatively geared investment property is the capital growth it can generate which is believed to outweigh all the smaller financial losses. It is true that over time, the cost of an investment property increases (keeping the location in check) hence you end up with a big amount at the very end once you think about selling your property. Another thing which makes the negative gearing a better option is the fact that negative gearing property investment will start generating positive cash flow over the course of a few years because the rents increase over time as well.

Negatively geared properties not only gain you a capital growth and subtle positive cash flow through a period of time but it is also very feasible for tenants as it becomes more affordable for them, thus; a great option for everyone. However, negative gearing your property investment in mostly believed to be a bad investment as compared to the positively geared properties because the disadvantages tend to outweigh the few advantages negative gearing offers.

Whereas, Positively Geared Property Investing proved to be a better option for people who are trying to earn passive income, since there are fewer disadvantages and more advantages such as creating a quicker positive cash flow for the owner as the rental income can eventually turn into a permanent supplementary source of income, having a lesser risk rate of going entirely broke in case of unemployment and loan repayments, being able to provide for a balanced portfolio for some investors and easily obtaining additional loans for bigger investments, etc.

But having its own cons, the positive gearing of your property can increase your tax rate just as your income, will take a lot of time for the long-term capital growth and the vacancy of your property i.e. no tenants, can be a problem. All of this highly dependable on the location of your property investment.

Without a doubt, it is certain that both of these options have their own pros and cons. Which one is a better option can only be decided according to one’s investment plans and future finance building strategies.

We can provide valuable information on Negative Gearing. Choosing the Right Property. Home Presentation. Selling Tips. Investing in Property and much more.

Invest Queensland Real Estate

Invest Queensland Real Estate is a licensed real estate agency that currently sells homes in New South Wales and Queensland.

The principals have over 35 years of experience in selling property and have worked for major franchises including Raine & Horne, L.J. Hooker, and Ray White. changing homes gold coast

We have been selling homes in South East Queensland and Northern New South Wales since 2001.

Real Estate values have risen considerably throughout Australia in recent years. Prices have boomed and so has real estate agent fees.

This massive growth in home prices over such a short time was great, however, because real estate agents fees were a percentage of the sale price of a home, they too nearly tripled.

A home that sold for $200,000 in 2001 was selling for around $500,000 in 2009.
Because of this, the real estate commission went from $6,000 to $15,000 in a matter of years.
Agents were still doing the same amount of work for 2 and a half times the money.

We thought this was totally unfair that agents could charge so much more for no extra work.
We decided in 2008 to reverse this trend and introduced lower commission and fixed fee real estate services.

We at Invest Queensland offer a unique real estate service that allows home owners to save many thousands of dollars when selling their home.
Most agents charge high fees for a modest service.
We supply a high service for a modest fee.

If you are looking at selling. Invest Queensland offers a unique and affordable marketing package.
Invest Queensland can supply valuable selling tips in the way of home presentation. We will explain the sales process so you can understand what is going to happen and when.

We can also discuss the best marketing methods needed to sell your home for the best price.
Details like professional photos, photo signboards, feature listings on realestate.com.au and quality brochures.

We can help you if you are buying selling or investing in property. We have a large range of properties suitable for each buyer.
We can also help with commercial and business sales and new land developments.

Buyers can be assured that we will give them the utmost service in helping them find their new home.

Invest Queensland Gold Coast offers FREE Market Appraisals.
We will supply a CMA (comparative market analysis) with each appraisal.

Save Commission When Selling Your Home

Most homeowners get a bit of a shock when they realize how much commission they have to pay to their real estate agent when they sell their home.
Save a commission when selling your home

Let’s face it when you sell your home you want to save as much on real estate commission as you can.
Why do real estate agents charge so much commission when selling your home.

Well, the answer is not easy.
Invest Queensland believes that they charge too much that is why we have developed a system that offers home sellers a low commission when we sell your home.
Our commission is just 1.25%.

That’s HALF of what most real estate agents charge throughout Queensland and New South Wales.

You still get the professional service the knowledge and negotiation skills you would expect when an agent sells your home. We go further. We believe our service is better than a lot of other real estate agents.

On an average home sale price of $600,000, you will SAVE $7,500 that is a huge amount why would you want to pay another agent this extra $7,500 when you can keep it for yourself.

Changing Homes can save you even more on commission if you use our fixed fee capped commission real estate service.

We can sell your home from as little as $2,500 by using the fixed fee service.

Finally, there is a real estate agent that cares about the seller that allows you to save a commission when selling your home.

Moving House, Who Should You Notify

So you have just sold your home and it is now unconditional, what should you do? Moving house changing homes low commission real estate.

Invest Queensland has put together a comprehensive list of what should be done and who to notify. As your move approaches, there are many items to attend to. An organized approach is essential, and the following may be of assistance.

Select a removalist. Obtain two or three competitive quotes and ensure you discuss insurance.


Have a supply of “notification cards”- it’s the best way of informing people about your change of address.

  • Advise electricity, gas and water providers. Arrange final readings, the disconnection of each and then arrange for reconnections at the new address.
  • Advise Australia Post and have your mail re-directed to your new address.
  • Advise telephone provider for disconnection and reconnection of phone services and the internet to your new home.
  • Advise the relevant authorities for your registration/license.
  • Advise banks, credit card institutions, credit unions, and finance companies.
  • Advise solicitors, stockbrokers and your superannuation provider.
  • Advise the electoral register.
  • Establish which local council you will be moving in to and they will be able to inform you which day the garbage is collected in your area.
  • Advise doctors and dentists. Establish the nearest medical center to your property.
  • Advise any subscriptions (journals etc) of your change of address.
  • Advise your local library and don’t forget to return any overdue books.
  • Close or transfer club memberships. e.g. video, gym sports club etc.

Why pay to move items you no longer want? Start afresh. It is amazing the number of things you will discover, in the process of moving, that you don’t need. Possibly consider having a garage sale!

If you plan to do some or all of your packing start well before your moving date. Start with seldom-used articles. Make sure you identify each box carefully and nominate which room it should be placed in.
Prepare an inventory of everything and carry it with you on moving day.

Last but not least, enjoy your new home.

Use a checklist when inspecting a property

START INSPECTING.
Each property you inspect will be different from the previous one.

It may be in another suburb, on another street, double-story, rendered walls, or have off-street parking. Trying to remember what each property had to offer and what was good and not so good about it may not be as easy as you think.

That’s why it’s important to go armed with a simple property inspection checklist that will help you outline what each property has and you can jot down some comments along the way. So over a period of weeks or even months, you’ll be able to remember what you liked and didn’t like about certain properties. After each property inspection, the process of knowing what to look for and getting closer to the “right” home should become easier.

PROPERTY INSPECTION CHECKLIST.

When inspecting properties it is important to take a property inspection checklist with you, so that you can remain objective. Sometimes we can fall in love with a property based on the way it is decorated, music playing in the background, or the smell of baking biscuits – even though it doesn’t match our list of criteria. Keeping a property inspection checklist handy can help you avoid this trap.

Make sure you inspect the property more than just once (if possible); a rainy day is perfect as you will see if there are any leaks. Taking along a friend or family member is a good idea, as he or she may be able to spot problems that you do not see. When you have found a property you are really interested in, visit it at different times of the day/night and week so you can gauge traffic levels and noise levels.

The criteria for your property inspection checklist might include:

  • If buying a house, what is the property size and land size?
  • If buying a unit/townhouse, how many units are there in the complex?
  • What is the condition of the kitchen/bathroom?
  • Is there room to extend the house?
  • Are there any easements running through the property? (it might prevent a swimming pool being built)
  • Are the rooms big enough? (e.g. Will your king-size bed fit into the bedroom and will there be enough room for a wardrobe?)
  • What are the neighbours like? (You’ll never know for sure, but you can get an idea by looking at the way they maintain their gardens by peeping over the back fences!)
  • Is there room for expansion/scope to renovate?
  • What is the council zoning for the block? (that will impact what can and can’t be done to the land and the property)

You also need to look out for signs of damage in the property:

  • Are there any cracks in the walls (interior and exterior)? Cracks may indicate shifting foundations and costly underpinning work may be required.
  • If it is an old house and the carpet is lifting up in places, have a look at the state of the floorboards. You may see signs of mould, white ants, borers or other problems.
  • Is there a musty smell? (which may indicate rising damp or water damage)
  • Check the walls on the other side of the bathroom for signs of water damage/rotting wood.

This will give you an idea of the condition of the property, however, it does not replace getting it professionally inspected by a building and pest inspector.