Buying an Investment Property

Are you considering buying your first investment property and feeling confused by terms like Negative Gearing, Capital Gains Tax (CGT), obtaining finance, and determining what property can you afford?

Negative Gearing occurs when the costs of owning an investment property—such as interest, rates, land tax, insurance, and depreciation—exceed the rental income, resulting in a ‘Rental Loss’. This loss can typically be offset against your personal income, reducing your taxable income and offering a tax benefit.

Considering the tax advantages of negative gearing might mean you can afford to buy that investment property sooner than you think.

Capital Gains Tax (CGT) applies when you sell your investment property. If you sell the property for more than you paid, the profit is considered a capital gain and is subject to tax. You can claim certain ownership costs to help reduce the gain and the resulting tax.

Interest payments on a rental property loan are tax-deductible, but principal repayments—the original amount borrowed—are not.

Allpoints Accounting: The Complete Guide

to buying a Negatively Geared Property

Allpoints Accounting offer a complimentary, 

obligation-free initial consultation to help potential 

investors better understand the process of

purchasing a rental property.