Help guide
Investment loans and negative gearing: general concepts only
Defines negative gearing jargon, contrasts cashflow versus taxable outcomes, stresses tax-law personalisation — seek your own accountant.
Definition
Negative gearing colloquially means interest and expenses on an investment temporarily exceed rental income — the loss may reduce taxable income within tax law limits.
Cashflow strain is still monthly real — tax refunds arrive later.
Borrowing considerations
Lenders evaluate investment loans on rental income shading and hypothetical stress rates.
Interest-only lowers near-term repayment but lengthens equity build unless prices rise — run multiple scenarios.