Get ahead of the pack with negative gearing house and land   

A major consideration any property investor has to make is whether to opt for a house and land package or pre-existing properties. There are benefits to both approaches, but the advantages of house and land packages far outweigh any potential drawbacks, particularly when it comes to tax.

What is negative gearing.

Negative gearing is a strategy where an investor structures their loans and investments to deliberately make a net loss after rental income and mortgage expenses. Whilst this may sound counterintuitive, the result is that the losses incurred are deducted from pre-tax income, therefore reducing the amount of tax paid.

Meanwhile, as has been tried and tested in Australia for generations, the value of the property continues to grow. Over the long term, the growth in value of the property combined with the tax savings each year result in a considerable investment return.

House and land packages also come with a range of additional benefits. As they are brand new and built off the plan, each house comes without wear and tear issues or existing damages. Purchasing from the plan also allows for greater flexibility in many homes, along with the affordability of being ahead of the pack for the area.

Effective house and land packages with negative gearing strategies are known to have formed part of the overall investment portfolios of most Australian millionaires, and can now be a part of your wealth journey.

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