Are you interested in growing your wealth through smart investments? If so, you’ve likely come across the term “positive gearing.” But what exactly does it mean, and how can you find the right investment opportunity for you? In this blog, we’ll provide you with a comprehensive overview of what is positive gearing and share tips on how to identify the best investment options with the help of MediPro Capital Finance.

Our experienced mortgage broker for doctors are here to make life easier for you. If you are part of the medical profession and you’re in need of assistance, we’re here to help. Give us a call on 1300 375 626 now or reach out through our online form.

Our Guide: What is Positive Gearing?

Positive gearing refers to a financial strategy in which the income generated from an investment property or other type of investment exceeds the costs associated with owning and maintaining the investment. In other words, the rental income or other form of investment returns are higher than the expenses (which is referred to as positively geared property), such as mortgage repayments, property management fees, maintenance costs, and other related expenses. This results in a surplus of cash flow, which can provide you with additional income or be reinvested to further grow your wealth.

Now that you have a basic understanding of positively geared property, how can you find the right investment for you?

Define Your Investment Goals

Before diving into the world of investing, it’s essential to define your investment goals. Are you looking for short-term gains, long-term returns, or a combination of both? Are you willing to take on more risk for potentially higher rewards, or do you prefer a more conservative approach? Clarifying your investment goals will help you narrow down your options and make informed decisions.

Assess Your Risk Tolerance

Every investment comes with a certain level of risk. It’s crucial to assess your risk tolerance before making any investment decisions. If you’re risk-averse, you may prefer lower-risk investments, such as residential properties in established areas, government bonds, or blue-chip stocks. If you’re willing to take on more risk, you may consider investments in emerging markets, high-growth industries, or commercial properties.

Do Your Research

Knowledge is power when it comes to investing – and now that you know what is positive gearing, you will have a better idea on what to consider. Take the time to thoroughly research potential investment opportunities. Consider factors such as the location, market demand, historical performance, growth prospects, and potential risks. Consult with investment professionals who can provide you with valuable insights and guidance based on industry expertise.

Crunch the Numbers

When assessing an investment opportunity, it’s essential to crunch the numbers to determine its financial viability. Calculate the potential returns, including rental income or investment yields, as well as the associated costs, such as property taxes, maintenance fees, and loan repayments. Factor in potential risks, such as interest rate fluctuations or market downturns, and evaluate the potential return on investment (ROI).

Seek Professional Advice

Investing can be complex, and it’s wise to seek professional advice, especially if you’re new to the world of investments. A reputable financial advisor or mortgage broker can provide you with personalised guidance and help you navigate the intricacies of investing. They can also assist you with obtaining financing, securing loans, and structuring your investments for optimal positive gearing tax benefits.

Trust MediPro Capital to Help!

Are you a medical professional looking for some more advice on positive gearing tax? Get in touch with MediPro Capital Finance on 1300 375 626 today to discuss relevant home loans for medical professionals with our team of experienced brokers. We’re here to point you in the right direction, ensuring you secure the best deal.


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