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negative gearing

Positive versus negative gearing – how it works

There is an on-going debate about the virtues and value of negative gearing in Australia. Let’s take a closer look at how both negative and positive gearing work, and what may be the right choice for you as an investor Negative gearing is, in effect, a cash flow outcome, as a federal tax policy allows investors to claim their investment losses against their taxable income. Positive gearing really just means that the rent you receive is more than the cost of all the property expenses each month. So you’re making an “income” from it. When a property is positively geared, …

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negative gearing

What a lot of fuss over negative gearing

Following on from Malcolm Turnbull’s blog today and the Grattan Institute’s report, let’s weigh into the debate on negative gearing. So many opinion holders out there see negative gearing as a tax advantage enjoyed by the rich. They also think that this tax advantage is a real reason as to why property prices in some cities have soared and thus property becoming “un-affordable” – another great evocative word for the headlines. We assure you all that this is not the case, that these opinions ignore some fairly basic fundamentals AND show a real ignorance of how the Australian housing markets …

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negative gearing
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