Negative Gearing Investment Property – Is it for you?
Negative Gearing vs Positive Gearing – what’s the difference?
In summary, a negatively geared property will cost you money to own, whereas, a positively geared property will pay you to own it.
Which one would you prefer?!
What are the benefits of negative gearing?
Whilst a negatively geared 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.
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.
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 […]
Every investor – whether expert or amateur – should be looking for the same things in a property investment to ensure its success. While there is no exact formula for buying a successful investment, it’s handy to have a checklist to consult to make sure you’re on the right track. Below are some of the […]
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 […]
(UPDATE: Some changes to negative gearing were made in the 2017 Budget – Read about the Budget changes here). Now I’m not one to whinge about a system without a solution…I think the current Negative Gearing model needs some repairs for two reasons. Reason 1 – The system was not designed so that someone could buy […]
(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 […]
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 […]
What is Negative Gearing? Negative gearing is a tax benefit you can claim if your borrowing costs are higher than the money you’ve made from an investment property. These losses can be claimed against your total income and increase your tax return and therefore, your income on your investment. For example, Jenny had a $50,000 […]