Metrocity Realty

Investing? See How Negative Gearing is Positive! 

Here's your choice: which would you rather pay? 

  • 7% interest, which is tax-deductible, or  
  •  48.5% tax, which of course isn't. 

The word "negative" seems to be so pessimistic, and the perception is that you need to lose money. 

But think about these tax deductions which are not an expense:

  • Depreciation on your building cost; 
  • Depreciation on contents; 
  • Borrowing cost over three to five years 

Think about the benefits of these, also: 

  • Capital gains; Prepayment of interest; 
  • Borrowing interest against your own home, which can be set up so your tax is reduced while increasing your wealth.

This is how negative gearing becomes positive gearing.