Gearing (Positive)
When rental income exceeds holding costs. Taxable — but cash positive.
What is Gearing (Positive)?
Positive gearing is when an investment property's rental income exceeds its ongoing costs — creating a taxable surplus. You pay tax on the profit, but the property generates positive cash flow.
Why it matters for you
Positive gearing typically comes with lower capital growth — usually regional, high-yield markets. Works well for investors prioritising cash flow, approaching retirement, or building a portfolio without income-concentration risk. Opposite strategic trade-off to negative gearing.