Our role as a consultancy company is to help you when making the big decision and provide as much information to you as possible. When it comes to gearing there are so many opinions and even more information to get your head around.
Our specialists will take the time to explain the benefits of each type of gearing. We then focus on which type of property will achieve the desired outcome. Finally, we provide a forecast for which point in your financial life-cycle you will need to implement the type of gearing strategy you require.
Our specialists will take the time to explain the benefits of each type of gearing. We then focus on which type of property will achieve the desired outcome. Finally, we provide a forecast for which point in your financial life-cycle you will need to implement the type of gearing strategy you require.
Staying Positive
At Yelland our approach to investing is to keep it positive.
Gearing in any sense is to borrow money which you will then invest. While there is a break down of positive, neutral and negative gearing we will always take you down the positive path.
Positive gearing is when the rent from your investment property is higher than costs such as loan repayments, interest, property maintenance and rates.
This is ideal in many circumstances, especially for investors wishing to keep their annual income relatively stable, or even boost their income.
In essence the tenant will be paying off the property for you, all the while you are reaping the benefits of a positive surplus to your annual income, a tax deduction on depreciation and capital growth in your chosen property.
Gearing in any sense is to borrow money which you will then invest. While there is a break down of positive, neutral and negative gearing we will always take you down the positive path.
Positive gearing is when the rent from your investment property is higher than costs such as loan repayments, interest, property maintenance and rates.
This is ideal in many circumstances, especially for investors wishing to keep their annual income relatively stable, or even boost their income.
In essence the tenant will be paying off the property for you, all the while you are reaping the benefits of a positive surplus to your annual income, a tax deduction on depreciation and capital growth in your chosen property.
Negative Gearing
Negative gearing is when an investor borrows money to acquire a property and expects the gross income to be less than the cost of owning and managing the investment, including depreciation and interest charged on the loan.
You would enter into this kind of arrangement if you expect the tax benefits and the capital gain on the investment to exceed the accumulated losses of holding the investment.
You would enter into this kind of arrangement if you expect the tax benefits and the capital gain on the investment to exceed the accumulated losses of holding the investment.
Our consultant is tasked with finding your needs and then matching them up with the perfect property to suit you.
