Expert Insights

Understanding property cycles

Expert Advice with Ian Hosking Richards 31/08/2012

De-mystifying positive and negative gearing

Finding positively geared property is not so easily achieved in many markets around the country. A lot of investors are wary of high risk, high return areas (eg mining towns) where high rental yields can be achieved. These high returns from the rent can also be eroded by unexpected expenses. Ask any investor who has received an unexpectedly large bill for maintenance or breakdown of a hot water system that has turned it into a negative cash flow property.

When it pays to get advice