Cairns Financial Planner - Walden Financial Planning

Negative Gearing Strategies

This facility allows you to invest more into the market & have greater growth & income opportunities than you usually would.  Investing a combination of savings and borrowed funds allows you to invest more, increasing the potential returns compared to investing savings only. 

If you have existing suitable securities such as a share portfolio or home equity you can also use this as leverage to borrow additional funds against. 

We can then use these funds to invest into a portfolio of managed funds, property trusts or direct shares.  The cost of servicing these loans is a tax deduction as they are for investment purposes. The investment portfolio will also generate income, which can be used to offset the interest expense.