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Positive gearing is when you use your property as security for a loan, and in turn, interest is paid on that loan. Negative gearing is when you use your property as an investment, and you don't pay any interest on the loan. This can be a great way to make money if you're able to hold onto the property for a long time. However, if you need to sell quickly, it might not be the best option for you. To know more about positive vs negative gearing strategies, visit this website.
There are two main types of investments:
Stock Investment: When you invest in stocks, you own a piece of a company that is making money. This can be a good way to make money if the company is doing well.
Property Investment: When you invest in property, you buy an asset that will produce income over time. This can be a good way to make money if the property is in a good location and is priced correctly.
Benefits of Positive & Negative Gearing: The main benefit of positive gearing is that it allows you to make more money from your investment. The main benefit of negative gearing is that it allows you to reduce your taxable income.
If you want to use negative gearing, you need to find an investment that is worth less than your home. If you want to use positive gearing, you need to find an investment that is worth more than your home. This means that the property must be used for personal use only (not for business purposes).