Positive Cash Flow vs Neutral Gearing

Positive Cash Flow vs Neutral Gearing

The basic definition of a positive cash flow property is an investment property where the income (usually derived from payments) is greater than the sum of all of the expenses of the property.

This means that you are bringing in more payments each cycle (week/month/year)…

Read more: Positive Cash Flow vs Neutral Gearing

Positive Cash Flow vs Negative Gearing

Positive Cash Flow vs Negative Gearing

Positive cash flow occurs when you receive more in payment income from your wrappee than what you pay on the likes of loan repayments, interest, rates etc... A positively geared investment can also be referred to as a 'cash flow property'.

Having a positive cash flow means you’re…

Read more: Positive Cash Flow vs Negative Gearing

Advantages

  • Returns money into your pocket from day one as the tenant is paying more than your expenses to hold the property.
  • Under valued properties with renovation potential and subsequent depreciation benefits from the capital improvements, can bring a property from a net loss to a net gain.
  • New properties with…

Read more: Part 3: Calculations of Positive Cash Flow vs Negative Gearing

What to look for in Positive Cash Flow:

How do you get Positive Cash Flow:

Normal situation where the cash inflows during a period are higher than the cash outflows during the same period. 

Positive gearing is when the payments  from your  property is higher than costs such as loan repayments, and interest,on the loan…

Read more: Part 2: What to look for in Positive Cash Flow

Positive Cashflow is the Foundation of any Successful Investment Strategy

Part 1: Positive Cash Flow

Positive Cash Flow as an investment strategy is great, especially if you’re just starting out. 

To get Positive cash flow from property investing you must be able to produce more income each week instead of losing…

Read more: How To Build Cash Flow In Property

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