For many years people have believed that a property investment was likely to entail a weekly cost.

We often see advertisements offering property which will cost the investor, say, $40 or $50 a week and many times in the early days of a property investment, unwary investors often find themselves with additional expenses with the resulting tax break providing only partial relief. 

The investor then has to supplement the income received in order to meet expenses, until they have either paid off some of the debt or increased the rents.

Investing in property does not have to mean losing money or even making a commitment each week (which is required with a negatively-geared property).

Buying negatively-geared property places enormous importance on capital gain as you must achieve a large capital gain to make up for the losses over time.

The answer is to ensure that the property you buy is cash-flow positively geared and to satisfy this criterion, the property has to return cash in your pocket, every week, from day one.

This concept may seem foreign to investors who are used to contributing money to their properties, but it is highly possible with property of every type, providing you do your research before you buy.

There are a few ways that you can achieve a cash-flow positively geared result from property: 

- The first way is to find a property whose rent returns are high in proportion to the purchase price and cover all the expenses on the property. The resulting gain, which is the cash left over after all expenses are met, is then taxed. Typically, property like this is found in regional areas based on one industry where renters are abundant. 

- A buyer using a substantial cash deposit  may also see a positive situation, as your total expenses are minimized due to a lower loan expense (interest).

- Cash-flow positively geared property is another way to see a weekly cash flow, and this exists where you find property with a good rental yield combined with a high amount of on-paper deductions. 

This type of property may be found anywhere!

It doesn't matter whether you invest in Western Australia, Victoria or Tasmania, (and it makes good sense to spread your risk throughout the country) as purchasing an investment property should be based on adequate research and analysis of population demographics, tenant vacancy, infrastructure and other objective factors.

Taking the emotion out of the property selection equation allows you to view your investment property as an investment medium. 
After all, you don't need to shop at Coles, Woolworths or Target, or bank at the Commonwealth Bank to assess whether you wish to purchase shares in those companies!

These decisions are made based on performance, yield and potential.
Investing in property is no different!

Cash-flow positively geared property will have an income which, when added to the tax breaks you get from claiming expenses and depreciation, outweigh the outgoings such as loan interest, rates, body corporate fees, etc...

To put this into perspective: 

- If a property costs you $40 a week (after tax), then you are limited in the number of properties you can buy to the amount of your surplus income, but;
- if a property gives you $40 a week (after tax), then you are only limited by your existing equity or available cash and cash in your pocket equals more available funds to pay down any debt while placing you more quickly in a position where you have increased your equity and made room for further investing.

Finding cash flow positively geared property is not easy, but it's not that difficult either...

New or near-new property of any type, where depreciation benefits are available in the early years, are the most likely to provide a positively geared cash flow for you. 
Older properties with some renovations, in areas where capital growth has been suppressed but the rental market is still active, may also fit this profile.

Either way, cash in your pocket equals increased investing potential and a greater chance at a financially independent retirement.

Cash-flow positively geared property can provide the means to accrue a secure retirement income.

It is by no means a magic formula, nor is it necessarily easy but good research and being prepared to take the time and put in the effort can result in a sound and safe property portfolio which should have a minimal impact on your lifestyle.