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Hey there, welcome back to another episode of the 360 Money Matters Podcast!
Today, we’re talking about something important in property investment called negative gearing. It’s when you lose money on a property with hopes that its value will go up over time. We’ll break it down with an example to make it easier to understand. Plus, we’ll mention how you can claim depreciation as an expense, even if your property makes money.
But negative gearing has its downsides too, like more risk and losing money each month. We’ll also talk about how picking the right property is crucial for making money in the long run.
We’ll cover other stuff too, like making sure you have enough money to support your investment, being careful with your money, getting good insurance, and being okay with taking risks. It’s also important to plan to keep the property for at least 10 years, and remember, this strategy might work better for people with higher incomes.
We really suggest getting advice before trying negative gearing. It takes a lot of thinking and planning to make it work right for you.
Whether you’re a pro investor or just starting out, this episode is full of useful stuff. So hit play and get closer to making smart property decisions!
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This podcast contains information that is general in nature. It does not take into account the objectives, financial situation, or needs of any particular person. You need to consider your financial situation and needs before making any decisions based on this information. This information is provided by Billy Amiridis & Andrew Nicolaou of 360 Financial Strategists Pty Ltd, authorized representatives and credit representatives of AMP Financial Planning – AFSL 232706
Episode Highlights
- What is negative gearing?
- A simple explanation of how a negatively geared property works
- Pros and cons of negative gearing
- Why it’s important to have backup plans and be good with money
- Who might benefit from negative gearing and what to think about
- Other ways to invest your money
