Negatively Geared Investment Property Benefits for High Earners
High-income earners face the highest tax bracket. Investors face capital gain taxes. Although the Australian government, like other governments, aim to collect taxes due, they also incentivise high-income earners to make private donations and community improvements.
Purchasing a negatively geared investment property falls in that logic.
To reduce their taxable income, high-income earners invest in an array of items including art, collectibles, and digital items such as NFTs. Even though properties incur risk, they incur far less risk than investing in shares. If the real estate market falters again, an individual can go underwater on their mortgage. However, for a high-income earner, it doesn’t pose a big problem.
Their goal is to reduce their taxable income. If they purchase homes that require serious investment, the investors accomplish at least two things. They take a run-down home off the market and fix it. They also do the work as a private citizen or investor. This means that cities, territories, and municipalities don’t need to complete the work themselves. They reap the benefit of the tax that comes with real estate.
In addition, property acts as leverage against inflation in the Australian housing market. The total benefits depend on the mortgage the individual obtains for the investment. Mortgage House works with clients to help them find the best financing product. We offer an array of mortgage products that benefit most financial goals and real estate purchases.
Negatively Geared Investment Property Conclusion
A negatively geared investment property benefits high-income earners and investors. Individuals interested in obtaining competitive financing can contact Mortgage House.