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You’ve probably heard this debate before: Negative Gearing vs Positive Gearing. But do you understand what they mean and what kind of investment strategies are they?
Well, in very simple terms, Negative Gearing is when the holding cost of the property is more than rental income that you are receiving and Positive Gearing means the rental income is more than the holding cost of the property. They are both different types of property investment strategy. But why would you invest in something that is losing money? And vice versa, why wouldn't you invest in something that technically, doesn't cost you a thing to hold?
If you are curious and are keen to learn more, this video from Ben will be perfect for you!
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