Can losing money be a good thing?

Can losing money be a good thing? teaser

EXCERPT

"Negative gearing is one of those financial buzzwords that we’ve all heard before, but might not understand.
So what does it mean and how might it affect whether or not you should invest in property?

Gearing is when you borrow money to make an investment. If you are paying more in repayments than you are earning from the investment, then the investment is negatively geared.

When it comes to properties, this means that if your monthly loan repayments are more than the rental income the property generates then it’s negatively geared. It’s often heralded as a full proof income solution for property investors.

Negatively gear your property and claim the financial loss associated with the property as expenses to offset your taxable income, all while your property’s value grows. But is there much substance to the claims, or is it modern day snake oil?"

To read the full article, please click here.