There was an interesting article on gearing in last Saturday’s SMH.
This has now been republished on the Domain website at
http://www.domain.com.au/Editorial/Article.aspx?a=articles/2004/02/23/1077384675688.htmlCheers,
Shushar“All our dreams can come true, if we have the courage to pursue them.” – Walt Disney
Hi Shushar,
Interesting reading… [^]
though the author Annette Sampson, forgets to mention, the other benefits of why people do -ve gearing, not just for tax benefits, but also for capital growth and gains.
Cheers,
sisHi all,
“Clinton says for negative gearing to make sense, you need to eventually plan to recoup all those losses and more. The tax benefits are real, but shouldn’t be the primary focus. After all, if all you wanted to do was to save tax, you could go on losing money indefinitely. How smart is that?”
With careful property selection negative gearing is only a short (how long is short?) term issue.
Speaking from experience two of my previously negative properties are now almost positively geared after less than three years. One of the properties is less than 5km from Perth City and the other within 15km of Brisbane centre.
Oh and then there is the growth that needs to be factored into the renturn on investment equation.
Derek
PS – I wonder if these sorts or articles will become more common place as shares regain some of their recently tarnished image?
Derek
It’s interesting isn’t it how to many commentators things need to be black and white.
Property is a good investment/ bad investment. Negative gearing is the only way to go. Positive gearing is only way to go.
The property market has crashed – shares are where you should be investing.
Sometimes I feel like a lemming! [
]Shushar
“All our dreams can come true, if we have the courage to pursue them.” – Walt Disney
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