What is negative gearing?

Written and accurate as at: 10 April 2017

Negative gearing is an investment strategy that investors may employ to build wealth and, in some instances, offset the tax payable on their other taxable income.

However, it is important to note that negative gearing may not suit everyone – it is a higher risk strategy. If you want to explore negative gearing, it is important to seek professional advice to ensure you understand the potential upside and downside and to put in place an investment plan that suits your situation.