Many of Australia’s richest people have big real estate investments. Some made money from it, while others simply keep their money there. It’s one of the easiest and most effective investments out there to be rich. There are different ways to earn from real estate.
Strategies
There are also sundry strategies to succeed. Some renovate old houses and sell or rent them at a higher value; others buy land and develop it before selling. Some create subdivisions, others erect business towers and condo complexes. There are also those who just buy property and hold it until it’s the right time to sell it. Apart from these methods, many real estate moguls play with the gearing of a property.
Gearing
If you’re familiar with the field of real estate, chances are you’ve heard of negatively and positively geared properties. Discerning one from the other is easy. A negatively geared property earns more than what it costs to maintain monthly. A positively geared property gains profit lower than the overall cost of its regular upkeep.
Logically, the way to go is the positively geared one because of its profit guarantee every month. Still, it doesn’t mean that there is no money to gain from negatively geared properties. While it has a lot of earning potential, it’s a method for experienced real estate investors. It’s harder to turn the tide in this case because it loses money every month.
Getting positively geared properties means that you earn something every month. You can use this profit to get another positive property or turn a negative one into a positive. It all depends on your disposable income and strategy to make this work.
Advice
The best way to earn from positively geared properties is by consulting a positive real estate property group. With specialists like those from Empower Housing and similar groups, you get guidance on making your property a profit machine.
Real estate is a rewarding field, but many don’t recognise this earning potential because of negative statements about investing in real estate. To avoid failing in investing in real estate or any other field, it’s best to know the ins and outs of the trade. Ask for expert advice before proceeding with any deal.
