What exactly is negative gearing and how can it be used as a profitable strategy for property investors?
A rental property is negatively geared if it is purchased with the assistance of borrowed funds and the net rental income, after deducting other expenses, is less than the interest on the borrowings source ATO
Property Income – Property Costs = Loss
In this short article, I will demonstrate that this mantra speaks for itself and when it comes making a decision to buy an investment property.
Put simply location is the only ‘rule’ that matters and there is a secret formula you need to apply.
From a personal finance perspective to invest is to allocate stored energy, in the form of money, toward creating or buying an asset that will provide a return via capital gains, dividends, interests, rents or a combination thereof. A good investment will return more back to you than you invested in the first place.
Wealth Goal = Invest X and get X+ back
These are the very simply steps successful investors take when making property investments.
If you buy an average property investment you get an average result.
This infographic shows you how to turn the average into the extraordinary, with some simple steps.
The Wealth Guy