Tag Archives: negative gearing

Buying Investment Property for Tax Advantages

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If you are lucky enough to live in a country which allows negative gearing, then this can be a great incentive to buy property as an investment.

However, you should never look to buy a property simply because it will reduce your tax bill.  Negative gearing only helps to lessen the cash loss that you make.

If you buy a property and it costs you $100 a week to hold, that is a loss, also known as negative cash flow.

You would only accept this loss if the future capital gains would cover the loss and then some!