09 Dec 2021

Negatively Geared Investment Property Benefits for High Earners

Individuals who find themselves in high-income brackets know that they incur higher taxes in Australia. Investors are another group that positions itself to incur high taxes. Even though the Australian government offices set the tax policies, they also allow for loopholes.

It’s possible to lower taxable income by purchasing a negatively geared investment property. Some investors purchase a property and keep their overhead costs low, especially the mortgage and all its costs. While an investor finds a tenant or fixes their property, they aim to keep their overhead costs low. It allows them to invest in the property and fix it up.

Once a tenant moves into the unit or home, their rent becomes income. Eventually, the rent payments offset the investor’s expenses. At this point, the investor needs to speak with a tax accountant who helps them manage their taxable income. Before reaching this point, the costs incurred to make the property profitable reduce their taxable income. 

In addition to purchasing a property that gears negatively, Mortgage House offers loan products that further reduce initial costs for an investor. For example, an investor can apply for an interest-only mortgage. The interest-only portion lasts from one to five years. But it keeps overhead low while the investor finds a tenant or resells the property. 

Our loan specialists can walk you through your options including business loan options.

Negatively Geared Investment Property Conclusion

Individuals seeking to invest in a negatively geared investment property can obtain financing from Mortgage House. Contact our team of loan specialists to explore your options.

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