New analysis shows investor demand was easing even before APRA’s intervention, and is likely to fall further. Read more…
Negative gearing is a perennial source of debate in Australia. Supporters claim the tax concession bolsters the housing supply, encourages investment and keeps a lid on rents while detractors say it distorts the market and prices out first home buyers.The one thing most people seem able to agree on is that the argument over negative gearing isn’t going away anytime soon. So what is negative gearing, how does it work and why is it so controversial? Our comprehensive guide provides you all the information you need to know about one of Australia’s favourite sources of debate.
Find out the a-z of negative gearing
Our introductory guide introduces you to the ins and outs of this tax strategy and explains how it works.
A comprehensive case study demonstrates how you can make the strategy work for you.
The Federal Election may have been decided, but the argument over negative gearing will continue to rage.
Negative gearing is a fairly unique system. How does it stack up to housing tax concessions in the rest of the world?
Just because you’re negatively geared, it doesn’t mean you have to lose money.
We look at the “what if” scenarios for negative gearing.
The latest negative gearing news
Small changes to negative gearing could have big impacts, property pundits have claimed. Read more…
The vast majority of Australians worry future generations will never be able to afford a home, a new survey has found. Read more…
The proportion of low-income households with a second mortgage has more than doubled over the last decade, new research has found. Read more…
The former head of Australia’s financial system inquiry has argued that changes to negative gearing should be considered as a means to address housing affordability. Read more…
Property investing tax strategies
Negative gearing is a strategy property investors use to offset their short-term losses in the pursuit of long-term capital gains. This requires the ability to absorb some cash flow losses, but a savvy investor can structure their property investment in such a way as to maximise its tax effectiveness.
Capital gains tax
Another important piece of the negative gearing puzzle is the capital gains tax (CGT) concession. This allows investors who have held their property for at least 12 months an exemption on 50% of their CGT bill. Coupled with negative gearing, the CGT discount makes property an extremely tax-effective investment strategy.
Getting your foot on the property investment ladder
While property might be a tax-effective and attractive asset class for investment, first-time investors can feel intimidated by the perceived difficulty of buying their first property. Before you wade into the world of property investment, there are some important strategies to keep in mind.
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