Positive Gearing in East Brisbane, QLD: Your 2026 Guide

In 2026, positive gearing is a realistic goal for property investors in East Brisbane, QLD - and more buyers are actively seeking it than at any point in recent years. Rising rents across the inner east have shifted the numbers in favour of cash-flow-positive investing, and the right suburb and loan structure can mean your investment property covers its own costs from the first month.

Units in suburbs like Cannon Hill - Woolloongabba or Morningside represent some of the strongest entry points across East Brisbane for investors focused on cash flow. With median unit prices sitting well below the million-dollar mark in several suburbs, and rents tracking consistently higher, the gap between holding costs and rental income has narrowed in ways that make positive gearing achievable - particularly with the right loan structure and lender choice.

AE Finance Solutions helps investors across East Brisbane, QLD compare investment loan options across 60+ lenders, completely free of charge.

Here's what East Brisbane, QLD investors need to know about positive gearing before approaching a lender in 2026.

What is positive gearing and why does it matter for East Brisbane, QLD investors?

A positively geared property is one where the rental income exceeds all holding costs - mortgage repayments, rates, insurance, property management, and maintenance. The net result is a regular cash surplus rather than a shortfall you need to top up from your salary. This is the opposite of negative gearing, where the property runs at a loss that offsets your taxable income.

Positive gearing matters because it changes your investing capacity over time. A portfolio of negatively geared properties creates a growing cash-flow drag that eventually limits how many properties you can hold. A positively geared property, by contrast, can fund its own costs and contribute toward your next deposit. For investors in East Brisbane who already carry a home loan on their own property, reducing the monthly cash-flow strain of an investment property is often the deciding factor in whether a second purchase becomes possible at all.

What makes a property positively geared in East Brisbane, QLD in 2026?

Positive gearing in East Brisbane in 2026 comes down to four variables: purchase price, rental income, loan structure, and holding costs. As of April 2026, competitive investment variable rates start from approximately 5.38% p.a., and your total holding costs need to sit below the rental income a property generates to achieve positive cash flow. Units in the $750,000 to $900,000 range across East Brisbane's inner suburbs are currently the most likely candidates, given their relatively lower purchase prices compared to houses and their strong rental demand near the CBD.

Your loan structure plays a significant role. A principal-and-interest loan at a lower rate will often produce a better cash-flow position over time compared to an interest-only loan at a higher rate, even though the monthly outgoing is higher. The lender you choose, the rate you negotiate, and whether you structure the loan as P&I or interest-only all shift the numbers meaningfully - which is why lender comparison is worth doing before you commit to any purchase.

Which East Brisbane suburbs and property types offer the best positive gearing potential?

The strongest positive gearing opportunities in East Brisbane in 2026 are concentrated in well-connected unit markets where median prices remain accessible and rental demand is driven by proximity to the CBD, hospital precincts, and employment hubs. Based on the latest CoreLogic data, here are the suburbs and property types worth examining closely.

• Woolloongabba units: Median unit price $752,500, with 12-month unit growth of +12.31%. Strong rental demand driven by the PA Hospital precinct, Gabba entertainment, and inner-city connectivity. Entry price point below $800,000 makes cash-flow-positive outcomes achievable at current rates with a solid deposit.
• Cannon Hill units: Median unit price $820,000, with 12-month unit growth of +18.84% as of June 2026. Cannon Hill's proximity to the Cannon Hill Kmart Plaza precinct, Belmont Road corridor, and the Eastern Busway gives it strong rental appeal across a range of tenant profiles. House growth of +20.20% over the same period signals a high-conviction suburb overall.
• Morningside units: Median unit price $910,000, with 12-month unit growth of +16.67%. Morningside sits between Hawthorne and Cannon Hill and draws tenants from the hospital sector, retail, and the growing Seven Hills precinct. Units here attract a professional rental demographic that tends toward longer tenancies.
• Stones Corner units: Median unit price $750,000, with 12-month unit growth of +18.11% across 52 sales. The lowest unit median of any suburb in this analysis, making the entry point more accessible and the cash-flow calculation more favourable at comparable rental income levels. Stones Corner's Greenslopes connection and village retail strip underpin consistent demand.
• Kangaroo Point units: Median unit price $815,000, with 12-month unit growth of +14.79%. River views, inner-city walkability, and proximity to the CBD and South Bank make Kangaroo Point one of the most consistently tenanted unit markets in East Brisbane. House growth of +18.60% over the same period confirms the suburb's broader market strength.
• Carina units: Median unit price $940,000, with 12-month unit growth of +10.59%. Carina sits at the upper end of this list on entry price, but it delivers strong rental demand from families and professionals who want the space and amenity of the eastern suburbs without the house price. It pairs well with a longer-term growth story given the postcode's overall trajectory.

Like to know which suburbs and loan structures work best for positive gearing? A free chat with an East Brisbane mortgage broker shows you what's within reach - no pressure. Free service 5-star rated No obligation Book a free chat today →

How do you structure a positively geared investment loan in East Brisbane, QLD?

Step 1: Talk to us

Get in touch and we'll assess your current financial position, your goals, and which loan structures across our 60+ lender panel best support a positively geared outcome for your situation.

Step 2: Establish your borrowing capacity

We work through your income, existing debts, and expenses to determine what you can borrow. For investors, lenders apply the APRA serviceability buffer, testing repayments at approximately 8.5% regardless of the actual rate. Understanding your capacity upfront avoids wasted time searching at the wrong price point.

Step 3: Model the cash flow before you commit

We run the numbers on your target property - purchase price, estimated rental income, holding costs, and loan repayments - so you can see whether positive gearing is achievable before you sign anything. This is where lender and rate selection directly changes the outcome.

Step 4: Choose the right loan structure

We identify whether principal-and-interest or interest-only best suits your cash-flow goals, your tax position, and your timeline. Each structure has trade-offs. We make sure you understand them before you commit, and we compare options across lenders to find the most competitive rate for your strategy.

Step 5: Get pre-approval and make your offer

We manage your pre-approval application with the most suitable lender. Pre-approval gives you confidence when making offers and shows vendors you're a serious buyer - particularly important in competitive East Brisbane suburbs where desirable units move quickly.

Step 6: Settlement and beyond

We coordinate with your solicitor and the lender through to settlement. After settlement, we stay in contact to review your rate as the market moves and to reassess your position if you want to build your portfolio further.

What mistakes do East Brisbane investors make when chasing positive gearing?

The most common mistake is confusing a low purchase price with a good cash-flow outcome. A cheaper property in a suburb with weak rental demand can produce lower rental income and higher vacancy risk - meaning the cash-flow calculation looks worse than a slightly more expensive property in a suburb with structural rental demand like Woolloongabba or Cannon Hill. The arithmetic of positive gearing depends on rental income as much as purchase price, and the two don't always move in the same direction.

The second mistake is locking in a loan structure without modelling the actual numbers. Investors who take interest-only loans assuming they'll improve cash flow sometimes find that the higher interest rate on I/O investment products offsets the reduced monthly outgoing. Running the comparison across both structures - at actual rates, with actual holding costs - before you commit is the step most investors skip. That's the step that most often determines whether positive gearing is actually achievable on a specific property, or just theoretically possible at the right rate.

How does positive gearing interact with your tax position in East Brisbane, QLD?

• Positive gearing and tax: A positively geared property generates assessable income - the cash surplus is added to your taxable income each year. For investors in higher income brackets, this tax liability needs to be factored into the cash-flow calculation to get an accurate picture of net return.
• Depreciation offsets: Investors in newer properties or recently renovated units can claim depreciation on the building structure and plant and equipment (fixtures, fittings, appliances). Depreciation is a non-cash deduction that can reduce the tax payable on your positive cash flow, sometimes materially. A quantity surveyor's depreciation schedule is worth commissioning before your first tax return.
• Capital gains tax: When you eventually sell a positively geared investment property held for more than 12 months, 50% of the capital gain is exempt from CGT. The combination of cash-flow-positive income and long-term capital growth is the core proposition of positive gearing as an investment strategy.
• APRA DTI cap: From 1 February 2026, banks must limit new loans where total debt exceeds six times gross income to 20% of their new lending. If you're building a portfolio, this cap can affect how many investment loans a bank will extend you. Non-bank lenders are not subject to this restriction, which is one reason lender panel breadth matters for investors with multiple properties.
• Tax advice sits outside lending: We're mortgage brokers, not accountants. The tax implications of your investment structure - including depreciation strategy and CGT planning - should always be confirmed with a qualified accountant before you commit.

Ready to find out which lenders give investors the strongest cash-flow result? We compare 60+ lenders across East Brisbane to find your strongest result - free, no obligation. Free service 5-star rated No obligation Book a free chat today →

Frequently Asked Questions

Is positive gearing still possible in East Brisbane, QLD in 2026?

Yes - positive gearing is achievable in East Brisbane in 2026, particularly for unit purchases in suburbs like Woolloongabba, Cannon Hill, and Stones Corner where entry prices are relatively accessible and rental demand is strong. The outcome depends on your deposit size, the loan rate you secure, and holding costs, which is why lender comparison is worth doing before you settle on a suburb or property type.

What deposit do I need for a positively geared investment property in East Brisbane?

A larger deposit reduces your loan repayments and makes a positive cash-flow outcome more achievable. Most investors target a 20% deposit to avoid lenders mortgage insurance (LMI) - a one-off cost that protects the lender, not the borrower - and to access more competitive investment rates. At the $820,000 median unit price in Cannon Hill, a 20% deposit is $164,000. Investment loans with as little as 10% deposit are available, but the higher repayments make achieving positive gearing harder.

What is the difference between positive gearing and negative gearing?

A positively geared property generates more rental income than it costs to hold - the surplus adds to your taxable income but puts cash in your pocket each month. A negatively geared property costs more than it earns - the shortfall reduces your taxable income but requires you to top it up each month. Both strategies have a place depending on your income, tax position, and portfolio goals.

Does interest-only improve positive gearing cash flow?

Not always. Interest-only investment loans typically attract a higher interest rate than principal-and-interest products, and the rate difference can outweigh the benefit of lower monthly repayments. The best way to assess this is to model both structures at actual rates for the specific property you're considering - which is exactly what we work through with you in a free consultation.

Can I use equity in my home to fund a positively geared investment purchase?

Yes, equity in your existing property is one of the most common funding sources for investment purchases. If your home has grown in value, you may be able to access that equity as a deposit without drawing on savings. How lenders assess equity access varies, and the structure of the equity loan affects your overall cash-flow position - both of which are worth comparing across lenders before you commit.

Should I use a mortgage broker or go directly to my bank for an investment loan?

A mortgage broker, every time. Investment loan pricing, serviceability assessment, and interest-only policies vary significantly across lenders - and the difference between the right lender and your own bank can be material to your cash-flow outcome. A broker compares options across 60+ lenders at no cost to you, whereas your bank can only offer its own products.

Does the APRA DTI cap affect positively geared investors in East Brisbane?

It can. From 1 February 2026, banks must limit new loans where total debt exceeds six times gross income to 20% of their new lending. For investors building a portfolio, this can affect how many loans a bank will extend. Non-bank lenders are not subject to this restriction, which is one reason having access to a broad lender panel matters when you're looking to grow beyond one or two properties.

Your Next Steps

Achieving positive gearing in East Brisbane, QLD is a realistic goal in 2026 - but it depends on selecting the right suburb, the right property type, and the right loan structure. The difference between a positively geared outcome and one that costs you money each month often comes down to lender choice and rate, not the property itself.

Ready to find out which lenders give investors the strongest cash-flow result for your situation? Contact Abel Desta for a free consultation or call 0422 868 524. We'll compare your options across 60+ lenders, model the cash-flow numbers, and identify the suburbs and loan structures that give you the strongest start.

About the Author Abel Desta Mortgage Broker, AE Finance Solutions Abel is a mortgage broker at AE Finance Solutions, helping buyers across Coorparoo, East Brisbane and the surrounding suburbs finance their homes. Abel Desta is a credit representative (467836) of LMG Broker Services Pty Ltd, Australian Credit Licence 517192. Based in Eight Mile Plains, he compares loans across a panel of 60+ lenders, at no cost to the borrower. Meet Abel → LinkedIn

AE Finance Solutions · Eight Mile Plains and East Brisbane, QLD · General information only — this article does not constitute financial advice. Please consider your own circumstances and seek professional advice before making any financial decisions.