Understanding Negative Gearing, Australian Property
To listen to a recent discussion on the subject click below on arrow play button.
Negative Gearing is hot topic at the moment. It’s a bit like a political ping pong ball going back and forth between the government and the opposition. We are hearing news reports mostly bad on a daily basis and it can be overwhelming and confusing. Negative Gearing is currently a buzz word and part of life for Australian Investors.
Best place to start is firstly understanding what “gearing” means; Gearing simply means borrowing money to buy an asset. In the case of property, you have taken out a loan to purchase a property. For a more detailed definition click here to go to wikipedia
Your property can be negatively, positively and neutrally geared:
- Negative gearing means that the interest you are paying on the loan is more than the income. As a result, you’re making a loss.
- Positive gearing means that the interest you are paying on the loan is less than the income. As a result, you’re are making a profit.
- Neutral gearing means that the interest you are paying on the loan is equal to the income.
With the help of George Serghis we are looking at giving you a basic understanding of what negative gearing is from a Real Estate point of view.
In this podcast George shares:
- What a Negative Geared Property Is
- Why Would You Buy a Negatively Geared Property?
- The Two Main Risks Involved in Buying a Negatively Geared Property
- What You Should Look for in an Investment Property
- George’s Best Advice When You’re Looking for an Investment Property
- How to Get Yourself Best Prepared Before You Buy Your Investment Property
If you’d like to know more or have a question for George, please find his contact details below:
Question: Do you currently have a negatively geared property or are you thinking of buying one? We love to hear about it, please comment below or on our Facebook Page!
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