Negative Gearing

Creating wealth through purchasing an investment property is a well established practice in this country.

By definition, ‘negative gearing’ is where you borrow to acquire the property and the interest expense exceeds the rental income you receive from the tenants. The obvious attraction of borrowing or gearing to invest is that you can purchase a property that might otherwise have been unaffordable and the strategy can also be tax effective because individuals can offset the loss against other assessable income