Negative Gearing is the situation when an investment such as property is purchased with the assistance of borrowed funds and where the rental income after the deduction of expenses (such as interest, bank fees, insurance and strata fees) is less than the interest commitment in the course of a financial year.
For tax purposes this negative net income can then be offset against any positive income from other sources. This is a very handy tool in minimizing tax.
|Home Loans||Non-conforming Loans||Car/Equipment Loans|
|Standard Variable||Credit Impaired||Hire Purchase|
|Basic Variable||Low Document Loans||Finance Lease|
|Introductory (Honeymoon)||Second Mortgages|
|Fixed Rate Loan|
|Business Finance||Investment Property||Other Loans|
|Commercial Mortgages||Why is an Investment Property a Good Strategy ?||Line of Credit|
|Short Term Business Loans||Negative Gearing||Reverse Mortgages|
|Medium-Long Term Business Loans||Capital Gains Tax|