- Home
- Negative Gearing Investment Property
Negative Gearing vs Positive Gearing
What’s the difference between negative and positive gearing? In summary, an investment property that is negatively geared will cost you money to own after receiving your rental return, whereas, a positively geared property will pay you to own it.
Which one would you prefer?!
Read our summary of negative gearing here.
What are the benefits of negative gearing your investment property?
Whilst a negatively geared investment property costs you money to own – those costs, in Australia, are tax-deductible.
This makes the cost of owning that negatively geared property cheaper in the hope that your investment will rise.
Generally, investors holding a negatively geared property have an expectation that they will make a profit through the long-term capital gains.
Has negative gearing changed recently?
No, the Labor Party proposed sweeping changes to the negative gearing laws but weren’t elected and have now changed their policy.
Negative gearing still includes costs such as interest on your loan, depreciation claims, strata levies, rates and maintenance.
Should you Negative Gearing Investment Property?
That’s really a personal decision – but you should always check with your accountant before negative gearing.
Negative Gearing Investment Property Articles:
Six Things To Know Before Buying an Investment Property: You may be thinking about buying an investment property. Australia has a strong property market, which attracts a lot of buyers. However, there are some property investment basics to keep in mind. The attractive Australian house market has many people investing in property. For beginners, this […]
Read more
Tyron Hyde was recently asked by Your Investment Property – “What was your best property deal?” How long have you been investing in property? Well about as long as I can remember! For me, the term “investing in property” means more than just buying an actual property. I’ve been “invested in property” ever since I […]
Read more
(UPDATE: – Read about the 2017 Budget changes to depreciation here). Dear Fellow Investors, I get it. I get what Bill Shorten and the Labor Party are trying to achieve by cutting negative gearing…but it stinks for 6 reasons. First, for those of you who might not know…Labor proposes to: Eliminate negative gearing to all […]
Read more
What is Negative Gearing Investment Property? Put simply, negative gearing is a tax benefit offered to investors on their borrowing costs. If your borrowing costs exceed the revenue gained from your investment, you are entitled to claim those losses against your total income. The benefit of gearing is that it allows you to own investments […]
Read more