Let's Talk Negative Gearing

Back in February, I sat down with Andrew Van De Beek to discuss negative gearing. You can find the video and podcast below.

Here is a brief breakdown of what we discussed.

1. The correct way to smell whisky “If you wanna be a wanker” is to breathe through your mouth.

2. Negative gearing in the most basic form is when you own an investment property and the property’s income is less than the expenses you pay out plus the cost of interest on your loan and any potential depreciation of your asset or the value of the home.

3. The beauty of the way that legislation has been written means that you can claim your loss as a tax deduction!

4. Depending on your circumstances, you may find yourself getting a tax refund or paying significantly less tax. If you have any questions, get in touch with Andrew from Illumin8.

5. To take advantage of the process, you need to start by ordering a depreciation report. They will assess the property and let you know what you can claim.

6. At the moment, the labour party are campaigning to abolish negative gearing. If that were to happen, all of the points listed above would be irrelevant. It could also have a dramatic effect on house prices as many investors could decide to leave the market, reducing demand.

We’ve posted the full interview below!

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