For sure mate, just praying and hoping for capital growth while you shell out thousands of dollars a year to top up the investment, and if you combine that with a downturn in the market or the loss of the high paying job, it can all go south pretty fast.
You do realise that negative gearing does not only apply to rental properties. One can negatively gear any investment. Shares, stamps, coins, houses. Any loss you incur holding any of these investments you can write off against your working income.. it’s a tax policy….
Do you own an investment property? If so, is it positively or negatively geared?
Im a big fan of positive cashflow property, I have a few friends in WA that have really been burned on negatively geared property's.
@@Neil.Denize Yeah I definitely much prefer a positively geared property in most situations! It's nice to not just be relying on capital growth.
For sure mate, just praying and hoping for capital growth while you shell out thousands of dollars a year to top up the investment, and if you combine that with a downturn in the market or the loss of the high paying job, it can all go south pretty fast.
@@Neil.Denize Yeah exactly! Takes away some of the risks, especially when some people have properties that are making huge losses each year!
@S&L L Yeah it's definitely a controversial strategy in some areas. There's always debate to not allow it.
great points
Thanks!
You do realise that negative gearing does not only apply to rental properties. One can negatively gear any investment. Shares, stamps, coins, houses. Any loss you incur holding any of these investments you can write off against your working income.. it’s a tax policy….
Yeah?