Mo Money #426 The positive geared property mistake
Nov 25, 2024
The discussion highlights the common misunderstanding surrounding positively geared properties. It explains how rental income can sometimes mislead investors in high-priced markets. The importance of location is emphasized, revealing that urban versus suburban strategies can greatly affect rental yields. Listeners are encouraged to reflect on their financial decisions and the significance of long-term growth over quick gains. The episode aims to equip individuals with smarter property investment strategies for better financial outcomes.
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Positive Gearing Explained
- Understand positive gearing before investing in property.
- Positive gearing occurs when rental income exceeds mortgage repayments.
The Allure and Challenges of Positive Gearing
- Consider your financial goals before pursuing positive gearing.
- High property prices and tight lending make positive gearing challenging.
The Positive Gearing Mistake
- Positive gearing can hinder long-term wealth building if it sacrifices growth.
- Properties in Australia are typically negatively geared due to high costs.