Property Gearing

Property gearing is a term used when an investor finances the purchase. Gearing can be both negative and positive. When an investor finances a property purchase with mortgage bond that is higher than the income received from the property in rental, it is often referred to as Negative Gearing. The opposite is called Positive Gearing. To read more about Negative Gearing see this article: Negative Gearing for Property Investors

 

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