Via one of our subsidiary companies we are able to access over 20 different property ivestment developments spread right throughout the major metropolitan markets of Australia.
Gearing can assist in creating wealth. The term gearing refers to the process of borrowing to invest. Negative gearing occurs when the expenses associated with the investment (interest costs, fees etc.) are greater than the income it generates. Positive gearing is the converse. The costs of these borrowing may be tax deductible and can be offset against other assessable income including salary, fees and investment income.
Gearing, particularly negative gearing, is often promoted as a tax saving strategy. However, the main attraction of a negative gearing ratio is the potential to achieve a higher rate of return on the investor's funds than would be possible without borrowing. The higher rate of return is achieved by a combination of possible capital gains, tax deductions and higher risk.
Investors on top marginal tax rates derive the maximum benefit from gearing, but pay the maximum capital gains tax when the investments are sold. Investors on lower marginal tax rates receive a smaller tax benefit and a lower capital gains tax liability.
For property investment advice from our friendly staff please telephone 1300 73 PLAN. We will be happy to assist you.
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