Negative Gearing

The term ‘Negative Gearing’ is bandied around but many people don’t actually understand what it means. Negative gearing is defined as “when your income from the investment is less than the cost of the investment (e.g. interest that you are paying to your lending institution on the loan). The difference between the two amounts is usually a deduction on your taxable income.” (from the Australian Securities and Investments Commissions website).

Negative gearing in property investment: Brisbane & Gold Coast
Negative gearing in property investment: Brisbane & Gold Coast

Negative gearing is an incentive for investors if it is utilised sensibly. It is not designed purely for the purposes of an investor making a tax saving. How profitable a negatively geared investment is largely depends on the ability of the investor to repay the mortgage and it also depends on after-tax capital gain.

If an investor is to make money from a negatively geared property, any potential future capital appreciation must be higher than the certain cashflow loss incurred today.

Why get involved with Real Estate as an Investment?

When you compare the returns of real estate to other types of investment, it has a relatively high ratio between security and income yield. While the sliding scale of risk and return still applies to a property investment, it does so at far less extreme ends of the scale. Basically, real estate investment can provide you with both security and a reasonable return.

Realistic Property – Why use us?

Realistic Property  is a Real Estate Agency which specialises in only one thing- the sourcing and sale of investment residential properties to Australian and overseas investors.
With a large range of properties available at any one time from many, many developers and builders with whom we have built up an association over many years, we have probably the largest range of properties offered by any one company operating in our field.

Due to our clients requests we have now expanded our property range to include properties in other parts of Queensland as well as our Gold Coast and Brisbane properties. As well, we have now added selected properties in Melbourne, Victoria plus the Central Coast and the mining areas of the Hunter Valley in New South Wales

Many companies in the investment property business like to offer a “one stop shop” with finance, sales, rental all in the one place and only offering a choice of perhaps 3 to 5 properties which they consider are the “only ones we would recommend” (!!!)

The main theme at Realistic Property is the right property for the client – and generally we can supply exactly that. If we haven’t got it, we will find it!
Realistic Property are a professional investment property and real estate service. We pride ourselves on finding and supplying the right property to you, in the right amount of time, at the right price. We are professionals in our field and know you will be pleased with the personal service we provide to each and every client.

If required, we can refer our clients to selected professionals who handle legal, accounting and taxation, property rental, landlord property protection insurance.

More Information on Negatively Geared Investment Property

If you would like to find out more about our investment property search service, please contact us today to discuss your requirements or to ask a question that isn’t covered in our FAQ section.