Understanding Negative Gearing, Australian Property


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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:

W:   www.georgeserghis.com.au
E:     george@georgeserghis.com.au
M:   0455 411 282
George Serghis on Facebook


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!




The information provided on this website if for general education only and in no way does it represent or constitute financial or specialist advice in any way, shape or form. It should not be relied on for the purposes of entering into any legal or financial commitments. Specific financial, legal or any other advice should always be obtained by a qualified professional before entering into any financial and legal commitments.   The responsibility lies entirely with the visitors to the website and any other products and outlets of Lake Macquarie Property Talk.

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