Pre & Post Purchase Analysis
At V M Business Consultants we will work with you at every stage of your investment transactions right from assessing the best structure to buy your investment to liaising with Real Estate Agents, Brokers and Solicitors & Banks if need be.
We will do all the sums, calculations, and number crunching exercise and present to you a simple and understandable report analysing all avenues of this major investment.
Our services includes but not limited to the following:
What is Negative Gearing
Negative gearing occurs when you borrow to invest in an income producing asset and the cost of borrowing exceeds the returns (income) from that asset.
Negative gearing for an investment property, for instance, occurs when the annual interest payable on the loan used to acquire the property plus other expenses incurred in maintaining the property, exceeds the annual rental income received from your tenants.
The real benefits of negative gearing are only realised when you combine the correct Tax & Financial Advice with a suitable property in the right location funded by the most appropriate loan product.
As such you should always seek expert advice and make sure the purchase is within your budget and will deliver long term financial benefits supported by Tax Concessions.
Put simply, a Negative Gearing example is when:
Simply put: the tax man and the rental income pays for your investment property!!
Negative Gearing - The Risks
If you were to believe some people it would all seem very simple – buy the right property in the right location and then have the tenant and the Tax Office partially fund your tax loss while you sit back and profit from the appreciating property. The truth is, while gearing can amplify your gain it can also magnify your losses.
If you negatively gear property, you need to understand some important points:
Positive Gearing occurs when you borrow to invest in an income producing asset and the returns (income) from that asset exceed the cost of borrowing.