Who uses negative gearing?
Who uses negative gearing? Well at Buyer Solutions we know that its not just the wealthy who negative gear when buying investment properties.
Who uses negative gearing?
I recently read that amongst the top people who use negative gearing are:
Teachers
Engineers
Nurses and Midwives
Retail workers
Office/Practice Managers and
General clerks
Of course, as you would expect CEO’s and senior management also ranked highly in those who choose to negative gear.
Negative gearing is when an investor borrows money to buy a property and the cost of interest and other costs when added together is greater than the incoming rent. Here is the ATO’s description on their web page.
As wealth creation strategy it can work well, encouraging people to buy a property and save some tax that they would have paid from their salary.
We stress at Buyer Solutions that not all property is good property and if you are not 100% confident what and where to buy, then give us a call for advice and guidance.
I personally have a great interest in the provision of more housing, affordable housing and supply of investment properties in Melbourne. I am not sure that Labour has considered that many ordinary Mums and Dads are buying investment properties, that are being snapped up by renters in an under supplied local rental market.
At a recent REIV breakfast, the topic was Market Update and Mr Gill King, CEO of the REIV informed us that the Melbourne wide vacancy rate for rental properties was 2.1%.
At Buyer Solutions we have leased two properties this month, both off one rental open priced from $400 per week to $520 per week rental bracket. We have no current vacant rental properties at all on our rent roll.
For advice and assistance on buying, selling and renting property in Melbourne, please don’t hesitate to get in touch on 0418 101 146 or jspencer@buyersolutions.com.au
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