In support of the tax measure which has enabled millions of Australians to invest in property

t seems like every man and his dog is calling for negative gearing to get the noose. However, in my opinion there is nothing negative about negative gearing because it has played a wonderful role over the years in helping the government provide affordable housing.

Negative gearing was introduced by the Hawke government in the 1980s as an initiative to encourage income earners to become landlords and, in doing so, support the supply of rental properties. With millions of Australians now owning investment properties, it’s fair to say the initiative has worked a treat.

The appeal of negative gearing into property was enhanced when the Federal Government halved the rate at which capital gains are taxed. This means that property investors, who pay tax at the top marginal rate of 47% (including the Medicare levy of 2%), pay tax on real estate profits at only 23.5%. Ultimately, negative gearing enables you to increase your stake in an asset (over and above what you could afford with your own savings) and this has the potential to produce solid returns.

But on the flipside it can also magnify losses, and this is why you must do your homework before borrowing money to buy an investment property. This involves finding a quality, well-located property that has the potential to produce positive long-term returns. In other words, make the right investment decision first and then consider the tax benefits.

Removing the Hassle from Sales & Rentals Brisbane Queensland Australia email us for a Free Market Appraisal

Removing the Hassle from Sales & Rentals Brisbane Queensland Australia email us for a Free Market Appraisal


About ljgrealestate 据联大

Removing the Hassle from Sales and Rentals across South East Queensland. Aim to Empower other like minded Property Investors. L J Gilland Real Estate is a prestigious boutique agency specializing in Property Investment Management Services and the Sales of Investment Properties with tenants in place. Comprised of a top performing group of handpicked specialists, our Agents proudly serve Property Investors in Queensland. Since 1996 our Agency has demonstrated a genuine enjoyment of working with people, developing long-term relationships and delivering on the promise of great service. Carlos and Linda Debello offer property investor's the confidence to sell and lease in any market. We provide comprehensive market appraisals, exclusive multimedia marketing campaigns, and knowledgeable, highly personalized counsel on all aspects of real estate. Our Property Management Team is equally considerate, offering investors with in-depth advise, well-researched rental valuations, and highly professional rental management services. Carlos’ direct mobiles are 0400 833 800 & 0413560808. Linda’s mobiles are 0409995578 & 0414978700 (prefer email contact for Linda). Office 07 3263 6085.
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