podcast

Can all investors succeed through negative gearing?

Can all investors succeed through negative gearing?
1

Ben Kingsley, Director, Empower Wealth

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Negative gearing is an important part of how you invest in property for those people who may be on good incomes. How it works is simple; you basically have out goings, which is the interest and the holding costs of the property, are exceeding the income, the rent that you're receiving. So for investors who are looking to use negative gearing, it's a great way to get into the market, minimize the tax that you're currently paying through your PAYG or through your business. Over time that asset's going to grow in value and as that asset grows, so does the rental income. So that negatively geared property in the early stages, with the capital value appreciating, also with the increases in the rent, will turn positively geared and give you a wonderful passive income for life.

Listen to other instalments of The Smart Property Investment Show:
Episode 53: 6 properties in 2 years: how this investor is achieving his goals
Episode 52: Will property prices fall? When? And by how much? What investors need to know
Episode 51: SPECIAL EPISODE: SPI team reveals all the financial details of its portfolio
Episode 50: 8 properties by 25: Former housing commission kid reveals how he changed his life and created wealth
Episode 49: How to build a sophisticated multi-property portfolio
Episode 48: ‘From just $2,000 in my pocket to 6 properties’
Episode 47: The SPI Show answers more listener questions: Special episode
Episode 46: 4 properties by 24 – how to build a portfolio without sacrificing fun, travel or food
Episode 45: Special guest Mark Bouris on what really makes property prices rise and when to invest
Episode 44: ‘11 properties by 31, now I’m stuck: What’s next?’
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