Australian investors favour negative gearing as a strategy. It has developed into a media catchphrase during the past few years, as well as a minor political flashpoint. Check out our negative gearing analysis below to learn more about this tax minimization approach if you're considering investing in real estate and have questions about what it is or just want to know what all the fuss is about. 

Negative gearing occurs when you borrow money to invest and your income from the investment (like rent) is less than what you spent on the investment (like interest and other associated costs). To put it simply, this means that you are deducting any losses from your investments from your taxable income.   

In Australia, mortgage interest for a loan for investment property is where negative gearing is most frequently applied. But if the dividends are lower than the loan interest, you might be able to negatively tilt investment money used to buy shares. For instance, if you borrowed $10,000 to invest and paid interest on it to buy shares in a company, but the shares only generated $7,000 in dividends, your investment would have lost $3,000 in value. As a result, you would be negatively geared and could deduct the $3,000
from your taxable income.   

If you are looking to buy a home in Narre Warren, Berwick, Cranbourne or the surrounding areas, Only Estate Agents are here to help. We are Narre Warren’s trusted real estate agents with many years of experience. 

We can help you find the right property at a price that fits your budget. Why not give us a call to discuss your requirements? Call 8786 8889 now for an appointment.