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Why Smart Investors Focus on Cash Flow Positive Properties with Tax Depreciation

Author By Ron Coleman
1 month ago
Why Smart Investors Focus on Cash Flow Positive Properties with Tax Depreciation

Introduction: The Only Property Strategy That Makes Sense 

 

If you’re still chasing capital growth and hoping for price appreciation, you’re playing the long, slow game—and leaving money on the table. The smartest investors today are focused on cash flow positive properties with tax depreciation benefits. These investments generate real, tangible income while simultaneously slashing tax bills. 

 

Why invest in something that bleeds money every month when you can own assets that pay you from day one? Let’s break down why this strategy is the only way to build serious wealth in real estate. 

 

What Makes a Property Cash Flow Positive? 

 

A cash flow positive property puts more money in your pocket than it takes out. That means your rental income covers: 

Your mortgage payments 

All property expenses (rates, insurance, maintenance) 

AND still leaves you with a profit every month 

 

Compare that to negatively geared properties, where you’re forking out money every month, hoping for capital growth down the line. Sounds risky, right? 

 

The Hidden Goldmine: Tax Depreciation Benefits 

 

Here’s where things get even better—depreciation. The ATO lets you claim thousands of dollars in depreciation on: 

🔹 The building itself (up to 40 years) 

🔹 Fixtures and fittings (appliances, carpets, lights, blinds, air-conditioning) 

 

That’s free money that reduces your taxable income and increases your real cash flow. 

 

Why Cash Flow Positive Properties Beat Every Other Strategy 

 

1. You Get Paid to Hold Your Investment 

 

Instead of draining your bank account, these properties put money in your pocket every single month. You can reinvest, expand your portfolio, or simply enjoy the extra income. 

 

2. You Pay Less Tax 

 

Thanks to depreciation, you can legally reduce your taxable income. Why give the ATO more money than necessary? Use depreciation to your advantage and keep more of your hard-earned cash. 

 

3. You’re Not Gambling on Market Growth 

 

Capital growth is never guaranteed. Anyone banking on appreciation alone is rolling the dice. Cash flow positive properties give you money now—not in some hypothetical future. 

 

4. You Can Scale Faster 

 

Banks love positive cash flow properties because they prove you can afford more debt. That means higher borrowing power and more opportunities to grow your portfolio—without worrying about holding costs. 

 

Final Thoughts: The Winning Formula 

 

If you want financial freedom, stop chasing speculative capital gains and start investing in cash flow positive properties with tax depreciation benefits. These properties pay you now, reduce your taxes, and allow you to build wealth at lightning speed. 

 

Serious investors understand this. The question is—do you? If not, let’s chat today and put together a tailored strategy to get you on the fast track to freedom. 

 

Additional Resources
Author
Ron Coleman

Real Estate Expert & Market Analyst

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