Rental and Management How to Achieve Neutral or Positive Gearing in 2026

Neutral or positive gearing is achievable in 2026, but it requires deliberate choices. With interest rates and costs higher than recent years, investors must use a combination of suburb selection, property type, finance structure and active management to improve cashflow.

Start with suburb selection. Target suburbs with stronger gross yields such as Nambour, Caloundra West and some new-estate corridors. These areas often deliver higher rents relative to price and lower vacancy risk.

Next, consider property type. Dual-occupancy, dual-key or properties with granny flat potential increase gross income and improve lender comfort. A well-designed dual-income duplex can lift gross yields into the 5–7% range, materially improving serviceability.

Finance structure matters. Lowering LVR, negotiating a better rate, or using interest-only periods strategically can reduce short-term cashflow pressure. For company purchases, present clear business cashflow and director financials to lenders to strengthen the application.

Active property management is the final lever. A proactive manager reduces vacancy, keeps maintenance costs predictable and improves tenant retention. Small tenant-focused upgrades such as durable flooring, energy-efficient appliances and low-maintenance landscaping increase rentability and reduce turnover.

If you want, we’ll run a tailored gearing model for your budget showing how deposit size, suburb choice and dual income affect cashflow under conservative scenarios. That model is lender-ready and helps you make a confident decision.

We are always happy to chat property and help however we can in the buying process – book in a FREE discovery call today! - https://www.baxtermason.com.au/book-a-free-discovery-call