Know about how negative gearing works When taking the leap to begin investing in property you first need to work out your investment strategy and whether or not it is better for you to buy positive geared property or negative geared property. Not every investor is the same, so not all strategies will appeal to all investors. But sometimes you will find that one strategy works better for most people, and the other strategy only works for a select few people. Often it can be better to invest using that strategy that works for most people than using the strategy that only really works for a couple of people. Positive Gearing is when the property is bringing in more money than what is going out.Neutral Gearing is when money coming in, is the same as what's going out (you can also have a negative geared property but with the tax advantages from the investment can make it Neutrally geared. Negative Gearing is where money coming from the Investment and tax advantages is less that what is going out. A lot of mystique has grown up around the sacred cow of negative gearing. So, let's put the record straight! A negatively geared investment is one that loses money. Instead of you receiving an income, you have to put more money into the investment all the time. Usually this is achieved by borrowing money against the investment, so that the interest payments on the loan exceed the income from the investment .Negative gearing does not guarantee high growth on the value of your property. Positive geared properties can still generate great growth, and the more properties you own the more growth you will be getting. For more information visit below link:
http://negative2positive.com.au