If your capital growth is running low and you are running a bit tight on income, your property just might be the solution. Passive income is a way to keep yourself from falling into famine once you lose your job or find your financial resources under certain risks. But how can your property merely help you out with such a problem? Thus, introducing positive gearing your property investment. 

There are certain ways to positive gear your property but what does it mean and how does it work comes first. 

What Is Positive Gearing Your Property Investment? 

Starting with a simple example to not complicate the answer to this question; let us suppose the rental income of the property you own is $100 each month, and the expenses you have to pay such as taxes, maintenance, loan repayments, etc. on that property are $70, this means your property is positively geared. Why? Because it saves you 30$ each month thus you end up earning $360 per year. 

How Does Position Gearing Your Property Works?

It is not all that difficult to positive gear your property. However, it requires some property investment planning and a bit of a professional help to minimize the risks whatsoever. People who generate a low capital income and keep facing fluctuation in their employment usually use their property to create a positive cash flow so they do not face financial problems later.

It is as simple as it can be. If you already own a property then you might have to focus on the renovations and lease options of your property. It is certain that the housing demand increases over time which makes your property very eligible for renting out, however, in order to create a positive cash flow to keep the income increasing each year, you need your property to attract market first. For that, your property must be maintained, renovated, and properly displayed. Once you make your property looks appealing, you can even rent it out to dual occupants, perhaps more if you eventually earn enough to build an extension to your property. 

More can be done so your rental income is increased. Look for a great real estate agent who can find good tenants so your expenses stay under control as well. The real estate agent can also help you in creating better lease options such as minimizing the time period of your property occupancy.  

It all sounds like a perfect plan until your expenses increase along with your income. In order to keep a strict eye on that, you need to keep a few things on your checklist and take care of them, such as managing the property on your own to avoid any charges. If that sounds like a problem then looking for a cheaper rental manager who would charge less than the others.

Another thing that can be done to support your rental property Australia is your insurance policy. Get a good one along with an interest-only loan. You can also get rid of your mortgage entirely and look for tenants who will cause fewer maintenance problems and stick with paying off their utility bills too.  

Now that you have your investments and the expenses under control, you can positive gear your property once you feel like your job and income is at a risk. There are no such disadvantages to positive gearing your property for passive income and positive cash flow unless you have a rapid capital growth through your job. Positive gearing your property can be made much more efficient and feasible if the correct decisions and help if acquired.

Ever since the housing demand started increasing at a rapid pace in Australia, it became very important for property owners to focus on positive and negative gearing investments of their property. It all depends on a person’s total income who owns a property or two in Australia. Whether you want to maintain a positive cash flow or put more focus on capital growth, it is up to your property and how you take care of it. 

Positive gearing is more beneficial versus negative gearing is more beneficial is a debate which still needs to reach a conclusion. It remains unsettled which option is better for earning passive income. However, one thing that is certain is the fact that this decision is entirely based on the property investor’s earning goals. The location of your investment property matters a lot in both the cases.

Negative Gearing Your Property Investment VS Positive Gearing Your Property Investment?

Let’s just assume that you own two or more properties in Australia which are not under your use but you have the ownership. You do not need to precisely generate the passive income as such because you earn enough with your job hence you end up paying more expenses on your properties as compared to the rental income you receive. This is called negative gearing. If you pay more expenses such as taxes, loan repayments, management fees, maintenance etc. than you earn, your properties just might be negatively geared.

This is not such a bad thing because the major advantage of a negatively geared investment property is the capital growth it can generate which is believed to outweigh all the smaller financial losses. It is true that over time, the cost of an investment property increases (keeping the location in check) hence you end up with a big amount at the very end once you think about selling your property. Another thing which makes the negative gearing a better option is the fact that negative gearing property investment will start generating a positive cash flow over the course of a few years because the rents increase over time as well. 

Negatively geared properties not only gain you a capital growth and subtle positive cash flow through a period of time but it is also very feasible for tenants as it becomes more affordable for them, thus; a great option for everyone. However, negative gearing your property investment in mostly believed to be a bad investment as compared to the positively geared properties because the disadvantages tend to outweigh the few advantages negative gearing offers.

Whereas, positive gearing your property investment proved to be a better option for people who are trying to earn passive income, since there are fewer disadvantages and more advantages such as creating a quicker positive cash flow for the owner as the rental income can eventually turn into a permanent supplementary source of income, having a lesser risk rate of going entirely broke in case of unemployment and loan repayments, being able to provide for a balanced portfolio for some investors and easily obtaining additional loans for bigger investments, etc.

But having its own cons, the positive gearing of your property can increase your tax rate just as your income, will take a lot of time for the long-term capital growth and the vacancy of your property i.e. no tenants, can be a problem. All of this highly dependable on the location of your property investment. 

Without a doubt, it is certain that both of these options have their own pros and cons. Which one is a better option can only be decided according to one’s investment plans and future finance building strategies.

Fencing can do more than just keeping unwanted visitors away. With fencing, you can achieve more with your space and have a more pleasant environment simply by doing a few extra little things.

If you desire a colorful fence, there are many different options and models you can choose from. You can even modify the existing fence in your home permanently or for the time being. On the other hand, you can completely revamp or buy a nice and colorful fence. Take a look at our list of possible actions for ideas and to get inspired for that your next outdoor project.

1. Painting

If you desire to add color to an already existing fence, painting may be the simplest option. The paint must adhere perfectly to the old fence. Do not forget to scrape the old paint off so that the new paint can stick. You may also want to sand it if it’s a wooden fence to obtain a smoother surface. If your fence is made of metal material, you can also paint it, but be very sure you’re buying paints which are made for metals. With this, your fence will not just keep unwanted visitors away, it will also beautify your home.

2. Having A Tough Time Painting? Use Privacy Strips

While it is unfortunate that painting a chainlink fence can be difficult, you can still improve the look. Even though you are painting through the bar and post, along with the top and bottom of your fence, it can be a bit difficult to paint those small pieces of metal which are in the middle of the fence. So what you’d do is to possible get privacy strips. Privacy strips are long, weather-resistant vinyl pieces that you can intertwine through any cyclone fence.

Depending on you, you may even create your personal color privacy stripes. If you want a semi-permanent effect, then you have to tear the old sheets, and then you weave them around the fence. On the other hand, for a more lasting effect, you can buy flexible vinyl or get old vinyl sheets which have neat patterns, cut it out and place it through your fence, for a nice aesthetic effect.

3. Adorn Your Fence Naturally With Vining Plants

Alternatively, you can go the natural route to make your fence look very nice, all you need do is to plant some climbing vines right beside it. Vines can be started on the ground along the fence or in small pots on the base of your fence. Then, when the buds sprout, gently guide the tendrils toward the fence so they can begin to climb. It works in solid wood and lattice fences. Hardenbergia violacea is a nice and adaptable option, it has pink, purple or also white flowers to add extra beauty. If you like bright red, go for a touch of purple on Coral Peas or Jasminoides Pandorea.

These are really simple ways to make your fence not a tool to only keep unwanted visitors away or a form of boundary or privacy, it also provides aesthetic functions and makes the house beautiful.