HOW TO IDENTIFY QUALITY
POSITIVELY GEARED PROPERTIES
The most common objection to positive gearing is the belief that such properties must be inferior or located in undesirable areas. This is demonstrably false.
Key Characteristics of High-Quality,
Positively Geared Properties:
1. Strategic Location Selection
- Areas with strong infrastructure investment
- Regions with diverse employment opportunities
- Locations with limited development potential but high demand
- Areas with strong rental markets relative to purchase prices
2. Property Characteristics
- Configurations that maximise rental return (dual occupancy multiple bedrooms)
- Low-maintenance designs that reduce ongoing costs
- Features that appeal to long-term, quality tenants
- Energy-efficient elements that reduce operating expenses
3. Financial Structuring
- Optimal loan structures that minimise interest costs
- Depreciation benefits that enhance cash flow
- Strategic use of equity to improve returns
- Careful balance of debt and asset value
