There is lots of interest right now about GEARING. And for some negative gearing is a part of life for Australian investors and seems to be the trendy property term used across the media right now.
What is gearing?
Simply put – means borrowing money to buy an asset. In property terms – you have taken out a loan to purchase a property.
Negative Gearing: the interest you are paying is more than the income. Running at a loss.
Netural Gearing: the interest and the income are the same.
Positive Gearing: the interest is less than the income. Making a profit.
(Read more about gearing here via RealEstate.com)
But there is so much more to negative gearing and we suggest you read this from REINSW (Real Estate Insitute of NSW).
There is so much more to this debate and we hope you get the information you need to make the right decision for your future.
If you want to find out more about negative gearing and how it may affect you – get in touch with us today. We are more than happy to discuss and help you understand what it could mean for you and your investments. Use the form on the side of the page to send us a quick email.