Negative gearing can be a smart financial strategy for property investors and those looking to build up a portfolio and prepare for their future.
How does it work?
Simply put, negative gearing describes the situation in which your rental income is less than expenses you pay on your property .The main expense is usually the interest on the loan you took out to pay for the property but can also include council rates, maintenance and repairs etc.
Because the amount you are making on the property is a negative sum, you can offset the taxes you pay from other sources such as your income.
Sounds great right?
Well, yes! Who wouldn’t want to pay less tax?
Unfortunately, negative gearing isn’t an option for everyone and for it to work effectively it’s highly recommended that you speak with a financial professional. I can walk you through your investment loan options and what your repayments might look like so that you’ll have a good idea of the cash-flow your investment might yield.
If you would like to discuss negative gearing and whether it’s the right option for you, reach out and let’s chat.
My Very Best To You Always,
