What is negative gearing?

Negative gearing is when an investment property costs more to maintain than the rental income it provides, meaning it operates at a loss. This loss is then deducted from your overall taxable income, which may reduce the income tax that you pay.
This is the opposite of positive gearing, which covers circumstances where the rental income made from the property is more than you pay in mortgage interest payments, maintenance bills and other costs.
An accountant can give you the most up to date information directly associated with your particular circumstances.

And you can read more about investment property including tips for researching and purchasing, in our helpful guide.