I was doing some research when I stumbled upon a promotional flyer for a development in my area. It is dated autumn 1992. Within the flyer appear the following quote.
"Apart from owners achieving a guaranteed return on their negatively geared investments…."
What the? Can someone please explain to me how one gets a guaranteed return on negatively geared property?
"Guaranteed return" probably just means a rental guarantee. A return doesn't have to make a property cashflow positive. A return is a return, even if it still makes the property negatively geared.
Cheers
K
owe cheers
They may also have been factoring in building write off depreciation in their statement as this would increase the return by increasing the negative gearing while the investor is not forking out actual money.
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