If you are lucky enough to be considering the purchase of an investment property, there are some favourable tax concessions available through negative gearing.
Negative gearing is an investment strategy where the costs of owning an investment property, such as loan interest, agents fees, maintenance and depreciation exceed the rental income earned.
The benefits include the ability to offset these losses against other income, reducing taxable income and potentially lowering tax liabilities. This strategy can provide investors with cash flow advantages and long term capital growth potential.
Negative gearing has long been a hot topic of debate in political circles, with some seeing it as benefiting the rich, but analysis has shown that private investors provide an essential housing service in the absence of adequate government housing. In addition, any costs to the taxpayer is usually offset by the savings made through means tested pension eligibility as the investor reaches retirement age.
If we can assist you with securing your next home or investment, please call one of our dedicated team.
Until next week,
Nick Lord (Director)
