Back to Resources Page
Negatively Gearing Your Investment Property—Is It Worth It?

Negatively Gearing Your Investment Property—Is It Worth It?

By Prime Advisory, 16 October 2023

To negatively gear, or not to negatively gear, that is the question.

In the face of recent interest rate rises, the question of whether you should negatively gear your investment property has become even more relevant.

Of course, negatively gearing a property means to make a loss on it—knowing that some of the loss can generally be offset against other income, including salary or wages. 

And the bigger picture?

While you’re making a loss, your property’s value may be growing. 

That is the hope at least. Negatively geared investors are counting on their overall loss being offset by the property’s potential capital appreciation.

Because investing in property is a long game.

But where the investment impacts cash flow, when does the potential purchase become too risky?

Those are critical questions, particularly as interest rates balloon. And they’re questions worth pondering for those who are currently negative gearing an investment property, too.

Unfortunately, there are no straightforward answers—as you might expect.

Taking into account the property’s value and potential value, along with rental income and interest rates—while also factoring in the average marginal tax rate and applicable tax refunds—are all part of the broader picture. 

And even if your property isn’t increasing in value as you would have hoped, it doesn’t necessarily mean you have to hit the panic button.

Does it all sound confusing?

At PrimeAdvisory, our expert team of financial advisors are all over this topical theme.

They can help you determine how investment properties fit into your overall wealth creation plan, and if owning a negatively geared property is a smart move.

Keen to find out more? 

Email [email protected] to chat today, so we can help you to make the best decisions for your financial future.


Make more possible.

Good things happen to those who subscribe.

    Let’s talk possibilities.

    We're relationship builders—so you never feel alone. Let's make more possible, together.

      The information contained on this website has been provided as general advice only. The contents have been prepared without taking into account your personal objectives, financial situation or needs. You should, before you make any decision regarding any information, strategies or products mentioned on this website, consult your own financial advisor to consider whether that is appropriate having regard to your own objectives, financial situation and needs.