INVESTING IN PROPERTY 

If you've got money to invest, one of the options you may consider is negative gearing.  With the correct financial advice and selection of the right property, negative gearing can provide great tax advantages.  This is good news if you're thinking about entering the property investment market for the first time, or if you want to increase your investment portfolio.

A property is negatively geared when the costs of owning it – that is,  interest on the loan, bank charges, maintenance, repairs and capital depreciation - exceed the income it produces.  Put simply, your investment must make a loss before you can claim a tax benefit.  It works not only for property, but also for shares and bonds. 

There is an inherent risk associated with borrowing to fund an investment.  While gearing can help you increase your gain on borrowed funds, the losses can be large in adverse circumstances.  As a general rule, only investors with the financial capacity to absorb the effect of potential falls in investment values, as well as an increased cost in interest payments, should consider negative gearing.  Talk to us today about your investment portfolio and how we can help you make your investments enhance your lifestyle.