Okay. Who can convince me negative gearing is better than positive? Or vice-versa?
Just looking to know what others personally think - what their opinions are as to the pros and cons of both methods of property investment / selling property?
Fiona
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Browse Forums Real Estate  19 Mar 2007 4,245 Sydney Gold Member Re: Negative Gearing vs. Positive Gearing 2Feb 24, 2008 10:17 am In order for gearing to work, the investment needs to appreciate significntly. I don't think property will be doing that for some time. Demolition August 2009, Construction Started September 2009, Completed December 2010 Re: Negative Gearing vs. Positive Gearing 3Feb 24, 2008 7:36 pm Positive gearing is the ideal to have, negative gearing only works if you have a tax issues and can justify "loosing"some of your income on a property via the expenses, and as casa says it is increasing in value to offset this loss.
So it is a case of - the gearing has to suit your circumstances, but loosing money just to pay less tax - is not what I call good business. 
As my dad used to say when he was in business - I hate paying tax - but at least it means I'm earning enough to have to pay it 
Steve Re: Negative Gearing vs. Positive Gearing 4Mar 18, 2008 11:23 am The main difference between the two would be obviously - with positive gearing you don't need to put in any more money after rented out, as your rental income is sufficient for your mortgage repayment. But you will need to pay extra tax for those income.
With negative gearing you need to pay extra first, then you can claim it by by tax, sounds more complicate to me... I think if you are going to keep it for a looooooooooong time, the value would definitely go up --> that's the most important thing! Re: Negative Gearing vs. Positive Gearing 6Mar 19, 2008 8:44 am that's interesting, wonder what's the tax benefit for a company. Got some questions if you don't mind:
Can you still do negative gearing with company? Does this mean that the house/property will be under the name of the company instead of individual? Will that add any difficulty or make it much easier if you need to get a loan? |
