Making Negative Gearing Work

Negative Gearing - if done correctly - can save tens of thousands of dollars whilst opening up your investments to high medium to long term returns. We don't recommend negative gearing for everyone, so we have prepared a few questions. If you identified with most or all of the questions, then consider negative gearing as a strategy worth considering:

	Emu Resources Australia PO Box 3388 Australia Fair QLD 4215 info@emuresources.com.au Tel/Fax +61 7 5526 7001

1. I am in a high tax bracket
2. I have the means to invest in property
3. I am prepared to listen to sound advice

With the right advice and property, negative gearing can offer some great tax advantages. If you are entering the property investment market for the first time, or want to increase your investment portfolio, negative gearing may be the best solution.

How do I negatively gear a property?

A property is negatively geared when the cost of owning it (ie.. interest on the loan, bank charges, repairs, capital depreciation and maintenance) exceed the income it produces.

Put simply, your investment must make a loss before you can claim a tax benefit.