What is negative gearing? - AAP Finance Brokers

What is negative gearing?

What is negative gearing?

This is when the cost of owning a property is higher than the income it produces.  If the rent you get for an investment property is less than the interest repayments, strata fees, maintenance and other costs, your investment is negatively geared, or making a loss.  This loss can be offset against your income, reducing your income tax bill.