Positive gearing (cashflow-positive)

A property is positively geared when rental income exceeds all expenses — it pays you to own it, before any capital growth.

Cashflow-positive properties add to your income and strengthen your bank servicing position, making the next purchase easier — which is why yield-focused investors target them. The trade-off is that high-yield properties are often in lower-growth locations, so total returns depend on the mix of cashflow and capital growth you're aiming for.

This page is general information, not financial, legal, or tax advice. Rules change — always confirm current settings with the linked official sources and seek independent professional advice.