Investopoly

← Investopoly25 aug · 29 min

Ep 423: Negative gearing deferred - heres how to manage the cash flow gap

Ep 423: Negative gearing deferred - heres how to manage the cash flow gap25 aug29 min

Read Full Blog Here Quarantining negative gearing doesn't just reduce a tax benefit; it can blow a hole in an investor's cash flow. Take a property with a $30,000 annual shortfall: previously, offsetting that loss might have clawed back $12,000–$14,000 in tax, bringing the real cost to around $16,000–$18,000. Now that loss must be carried forward, potentially for 10 to 20 years, leaving the investor to fund the full $30,000 upfront. For many, that makes established property simply unaffordabl...