Negative gearing property

Negative Gearing Property

Negative gearing was introduced by the governments of Australia and New Zealand in the early 1980 s. This was done to encourage people who are wage earners to purchase property as a form of investment. The underlying thought was that this would lead to a greater availability of rental property which is necessary for any economy and especially one where the movement of labour is very common. The introduction of negative gearing was also supposed to boost many industries that rely heavily on the construction industry.

In simple terms, negative gearing is when you buy an investment (property in our case) by borrowing and the income you receive from that is less than the costs you incur. This might sound stupid but the benefits available are in the form of tax cuts for people going for such investments as also the promise of long term gains in the form of capital appreciation. Negative gearing has been quite popular in the country since its introduction but there have also been quite a few detractors who think that it is a tool used by property sharks to fleece unsuspecting investors.

The problem with negative gearing is that it that it works well enough in a booming real estate market (of the sort seen in Australia between 1996 and 2004) but if the market is not looking up, it would lead to reduced or even negative cash flow. So basically choosing whether you want to go for negative gearing is like choosing between the one bird in hand and the two birds in the bush.

Although any type of real estate or property would be good investment, apartments are probably the best bet. The simple logic behind this is the fact that an apartment, apart from being a good and regular source of income for you, can also be turned into your own abode, if you feel like it. If you are looking for an apartment in Wollongong, you don t need to look far;

Invest Construct Pty Ltd is here for you. Based in the glorious Illawarra, Invest Construct Pty Limited has been involved in property development within the Wollongong City area since commencing operation in 1996. With a care for quality and value-for-money Invest Construct has adopted an in-house design and estimating policy resulting in the best possible outcome for investors and owner-occupiers.

The range of projects handled by this company is substantial and varied. Wollongong s skyline today is replete with buildings that have been developed by Invest Construct. The range includes such developments as Abercrombie (1994), Rowland (1996), Osborne (1998), Atchison (2000), Loftus (2003) and Kembla (2005). All of these have become landmarks in the city and the company is currently selling The Shores and Best Western Wollongong. To know more about Invest Construct Pty Ltd and the apartments being offered by them, please visit www.investconstruct.com.au.

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