Comments on: Negative Gearing

By: Investment-Mortgages

Investment-Mortgages — Mon, 09 Apr 2012 01:45:41 +0000

@ Peter N, Well rents also go up so it would become less negative geared over the ten years if not positive geared. So wouldn’t that make it worth it also?
You only have to look at any history chart to see that it doubles on average every 7-10 years( and i mean over the last 150 years, not just the last ten….). I must say though once our mining boom drys up we are heading for uncharted territory!!! I will be selling a lot leading up to that

Matt
Investment-Mortgages recently posted..What Is A Mortgage?

By: Peter N

Peter N — Thu, 22 Mar 2012 21:15:06 +0000

Property does not “traditionally” double every 10 years. Adjusted for inflation, on average, here and around the world, property tracks inflation, as it should in a balanced economy. Since the late 90′s we’ve been living in a bubble economy, which may have changed peoples perception of “normal” – people have a short memory. However, now that prices are falling again, and will be for a long time, people will learn.

It is foolish to assume property will double, this is not a certainty, nor is it that it will rise at all! Try to calculate what happens if property stagnates for 10 years. Or what if it drops 5%/year for 5 years, then rises a few % per year and you end up with -10% over 10 years. How much money did you pump into the “investment” and whats your final performance? Dismal.

By: Is A Quantity Surveyor Depreciation Report Tax Deductible? | Investment Mortgages

Wed, 17 Aug 2011 10:25:28 +0000

[...] essential to have all your deductibles listed so you are maximising the advantages if you have a negative geared property. There are tax benefits of negative gearing so you may as well use them Like this:LikeBe the first [...]

By: Negative Gearing Calculator

Negative Gearing Calculator — Mon, 13 Sep 2010 05:36:20 +0000

Excellent example. I find that people really don’t understand negative gearing until they see the numbers. We’ve just put up our online negative gearing calculator, feel free to check it out if you’d like to run the numbers yourself

http://www.dolmanbateman.com.au/online-tools/negative-gearing-calculator/

By: Steps To Buying Your Next Property | Investment Mortgages Brisbane | Qld | Investment Mortgages Brisbane QLD Australia Mortgage, Finance and Insurance

Wed, 19 May 2010 09:53:01 +0000

[...] 2- Get finance approved. -This is a crucial step, and usually neglected until the last minute when you have found a home to buy. Find out what your purchasing power is and how it ties in with your budget. Do you need to buy cash flow positive, neutral or a negative geared property? [...]

By: Investment-Mortgages

Investment-Mortgages — Sat, 05 Dec 2009 08:18:09 +0000

As property prices rise the rent growth sometimes slow(as more people are buying houses instead of renting) however the capital gains are good. The rents are still growing however so the yield will increase with time on your original borrow, the interest rates are rising also so that the tax deductible amount increases.

By: Greg

Greg — Sat, 05 Dec 2009 00:34:04 +0000

So how does this work as property prices rise and rents increase?

By: Interest Only Loans | Investment Mortgages

Interest Only Loans | Investment Mortgages — Mon, 05 Oct 2009 01:48:35 +0000

[...] If it was an interest only loan, the whole repayment is tax deductible. This helps servicing (negative gearing: see earlier post) for sure come tax [...]

By: Why not to cross collateralise your investment loans | Investment Mortgages

Why not to cross collateralise your investment loans | Investment Mortgages — Mon, 28 Sep 2009 08:42:11 +0000

[...] cross collateralisation(Especially with negative Gearing)can bring your real estate investment financing plans to a [...]