Finding a Property Investment That Will Pay You to Own It!

Do you realise that if you own a positively geared property that it is virtually paying you to own it? Not only are you getting a return on your property investment in the form of capital appreciation but you will also be getting a return in terms of weekly rental excess over expenses.

This is what we mean by being paid to own the asset. You will in effect be receiving capital growth from two perspectives, cash and equity.

If you earn $1,400 in terms of cash from your rental property you may think that a return of that nature on a deposit of $40,000 is not very much return on your money (your deposit on a property). But if you look at the $1,400 cash return and then take into account the average return on capital growth of a property of approximately 7% on a $200,000 property which is $14,000 plus the $1,400, you then have a return of $15,400 annual return on your deposit (cash investment). This value equates to approximately 38% return on your initial investment of $40,000.

That is not a bad return is it? It is a lot more than you would receive if the $40,000 was sitting in a bank account earning 4% interest.

From this evaluation you can see that owning positively geared properties is definitely the way to go.

The only reason that I can see why someone would want to own a negatively geared investment property is if by being negatively geared the expenses will bring their taxable income down into a lower tax bracket. Then there definitely would be some serious advantage in purchasing negatively geared property.

So where do you go to find positively geared property?

There are investment groups that you can contact and they have access to many different types of positively geared properties and as well as that they also have access to different types of investment properties. The other types of properties that they may be able to show you would be Joint Venture Property Development and Land Developments.

When building your portfolio it can be advantageous to have a variety of investments, but it should be pointed out that having in depth knowledge is essential so that you do not put your monies at risk. Seek professional advice when you are planning on investing and make sure you have done sufficient research so that you are comfortable with the decisions that you will be making.

Everyone has a different interest and a different goal with their property investing so make sure you are comfortable with what you have chosen as your vehicle for building wealth.