10
The result is that the cost of owning the
property is being funded by your tenant (in
the form of rent), the tax office (in the form of
tax savings) and your surplus cash flow.
Ultimately most investors will aim to be
positively geared in the long run. Generally
high tax payers choose the negatively
geared investment option to maximise their
tax returns and benefit from the long term
capital growth potential. Investors closer to
retirement or in a lower income bracket may
choose positively geared investments to
maximise their income potential.
As always it is best to seek professional
advice before proceeding with any
investment strategy.
Feel free to call the office
or ask your accountant to
calculate the various loan
to income ratios that may
help you decide which
gearing option is best
suited to your individual
circumstances.
