Investment Loans
Positive Gearing
Positively geared property refers to properties that have an income that is greater than its expenses. This results in a net profit. Like all net profits this amount is taxable.
Negative Gearing
Negative gearing property refers to the costs associated with maintaining a property exceeds the income generated. As such, negatively geared properties result in a tax deduction. Costs associated with the property include interest payments and other expenses. Ultimately the net loss is offset against your income.
This guide is general information only and is not product advice. If you need advice on your circumstances you should seek professional financial advice.
