| Do you realise that if you own a positively geared | | | | want to own a negatively geared investment |
| property that it is virtually paying you to own it? Not | | | | property is if by being negatively geared the |
| only are you getting a return on your property | | | | expenses will bring their taxable income down into a |
| investment in the form of capital appreciation but | | | | lower tax bracket. Then there definitely would be |
| you will also be getting a return in terms of weekly | | | | some serious advantage in purchasing negatively |
| rental excess over expenses. | | | | geared property. |
| This is what we mean by being paid to own the | | | | So where do you go to find positively geared |
| asset. You will in effect be receiving capital growth | | | | property? |
| from two perspectives, cash and equity. | | | | There are investment groups that you can contact |
| If you earn $1,400 in terms of cash from your rental | | | | and they have access to many different types of |
| property you may think that a return of that nature | | | | positively geared properties and as well as that they |
| on a deposit of $40,000 is not very much return on | | | | also have access to different types of investment |
| your money (your deposit on a property). But if you | | | | properties. The other types of properties that they |
| look at the $1,400 cash return and then take into | | | | may be able to show you would be Joint Venture |
| account the average return on capital growth of a | | | | Property Development and Land Developments. |
| property of approximately 7% on a $200,000 | | | | When building your portfolio it can be advantageous |
| property which is $14,000 plus the $1,400, you then | | | | to have a variety of investments, but it should be |
| have a return of $15,400 annual return on your | | | | pointed out that having in depth knowledge is |
| deposit (cash investment). This value equates to | | | | essential so that you do not put your monies at risk. |
| approximately 38% return on your initial investment | | | | Seek professional advice when you are planning on |
| of $40,000. | | | | investing and make sure you have done sufficient |
| That is not a bad return is it? It is a lot more than | | | | research so that you are comfortable with the |
| you would receive if the $40,000 was sitting in a | | | | decisions that you will be making. |
| bank account earning 4% interest. | | | | Everyone has a different interest and a different goal |
| From this evaluation you can see that owning | | | | with their property investing so make sure you are |
| positively geared properties is definitely the way to | | | | comfortable with what you have chosen as your |
| go. | | | | vehicle for building wealth. |
| The only reason that I can see why someone would | | | | |