All Topics / Help Needed! / Positive casch flow VS Positive Gearing

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  • Profile photo of slipdetufslipdetuf
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    @slipdetuf
    Join Date: 2010
    Post Count: 1
    January 12, 2010 - 5:28 am

    Hi Guys,

    New to this forum (to Australia as well..).
    I am reading Steve Mcknight books, it is really interesting .
    I am getting confused  with 2 concepts though.

    As far as I understand :

    Psoitive casflow property is when you repayment (principal & interest ) + cost are < Rent
    Positive gearing property is when your inerest cost + other cos < Rent

    In other words one cover even your principla the other just cover your cost.

    Am I right?

    Cheers

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