Hi Dadaw,
As housing prices continue to rise for renters and potential buyers in 2024, what does this mean for investors like you?
Mark Chapman from H&R Block explains that negative gearing allows you to offset rental property losses against your other income, which could reduce your tax bill.
Consider this: Bob from Melbourne used negative gearing when he purchased a property in 2016. While he initially made small annual losses on rent, when he sold the property five years later, he made a substantial after-tax profit of $180,550*.
The key? Rising property prices and capital gains tax discounts. However, this strategy works best in times of increasing house prices.
