A positively geared property (also known as a 'cash flow property') is an investment that generates more in rental income than it costs in loan repayments, strata fees, and other expenses associated with ownership.
Positively geared properties can generate you a passive income. This is because they generate more in income than they cost in expenses. You can also get more information about positively geared property via https://panvest.com.au/strategies/positively-geared-property/.
Image Source: Google
Income Goes Up Over Time
Rent almost always goes up over time, but your one major expense, your mortgage repayment stays the same.
So you can either have more money in your pocket every month or you can pay off the loan of the property quicker. This means that over time it gets easier and easier to pay for the property.
There Can Be Less Risk
There can be less risk when you invest in positively geared properties because you are earning income from day one.
With negatively geared properties you lose money every month and you have to sell for a profit if you want to make that money back. However, if the property doesn't go up in value then you can lose a lot of money.
With positive cash flow properties, you make money from day one! This means even if your property doesn't go up in value you can still make money through your rental income.