Enhances capital growth
This simply means that you are able to secure property in high capital growth areas if you are a proper investor who has a deep knowledge of the market. Positive cash flow properties can also acquire capital growth, but the problem remains that they are a little bit much harder to find. You’ll eventually realize that obtaining those capital growths will further allow you to generate more money in capital growth than you are spending through the losses of your property in New Zealand.
Opportunity for development
When you invest in positive cash flow properties, it will only limit the places and areas that you can purchase from. But on the other hand, you can readily develop one property into multiple properties or land into a development asset with negative gearing properties
Potential tax savings
Every penny that you considerably loose in an investment property can also be effectively claimed simultaneously against the money that you normally earn from your job and that’s why it is best to seek a professional opinion when claiming anything to do with tax.