Getting rid of negative gearing has been a hot topic.
Negative Gearing To Stay For Off The Plan
Talk of abolishing negative gearing has caused heated debate between various politicians and public figures in recent months. Before we expand on how you can still secure negative gearing benefits on your investment properties, lets give a brief overview of what it actually is.
What is negative gearing?
Negative gearing allows an investor to effectively reduce their taxable income and is used by many Australian property investors as an excellent form of financial leverage.
Public perception is that only the wealthy can benefit from negative gearing, however the truth is the majority of property investors that are leveraging from negative gearing are actually people earning less than $85,000 per annum.
Negative gearing to remain for Off The Plan properties
What seems to have been lost in most of the media coverage is that regardless of which party wins the next election, negative gearing will remain for all new and Off The Plan properties.
The Australian government needs everyday property investors to continue providing affordable accommodation for our rapidly growing population, and keeping negative gearing for new properties will continue to stimulate more construction.
For those investors who have been sitting on their hands waiting to see what happens with the negative gearing debate now have an extra reason to look at buying Off The Plan for their next investment property.
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