
What to look for when buying an investment...
When buying an investment property, there is generally a lot less emotion involved than when buying your own home. You'll want it to be in a good area, and to be a property that will produce sound...
A negatively geared property refers to when the costs of owning a property, like mortgage payments and maintenance, are higher than the rental income it generates.
A negatively geared property refers to when the costs of owning a property, like mortgage payments and maintenance, are higher than the rental income it generates. This means the owner is losing money each month and may need to cover the shortfall themselves.
Put simply, a positively geared property earns more rental income than the expenses of owning it, so you make a profit each month. On the other hand, a negatively geared property earns less rental income than the expenses, so you make a loss each month.
The main advantage of having a negatively geared property is that it can potentially reduce your overall tax liability.
When the expenses of owning the property exceed the rental income it generates, it creates a taxable loss. In other words, owning a negatively geared property can help reduce the total amount of tax you owe on your income.
Compare your property to recent sales in the area to get a current market estimate.
You might also be interested in
When buying an investment property, there is generally a lot less emotion involved than when buying your own home. You'll want it to be in a good area, and to be a property that will produce sound...
Thinking of investing in property, but not sure where to start?Property investment is a popular national pastime, with some 2 million Aussies calling themselves landlords and residential real...
Investing in property comes with risks, rewards and obligations - one of which is fulfilling your tax obligations at the end of the financial year.To ensure the profitability of your investment,...