Tuesday, 30th June 2015
The greatest misconception about negative gearing is that it's only for people on high incomes.
Put simply, negative gearing occurs when the cost of investing is higher than the return you achieve.
It's a strategy that can be used by anybody, regardless of their income.
Negative gearing is attractive from a taxation point of view, because you can deduct the costs of holding your investment property from your overall income.
These costs then work to reduce your tax bill.
It means less money going out of your own pocket each week, effectively improving your cash flow.
Until next time,
From the desk of Christine.