Concept of Negative Gearing
Negative gearing many people have come across this word and have a
hazy idea about what it is like but they are still confused about the concept
of negative gearing. Well here you will get a clear picture about what
negative gearing is all about and what is the situation when this arises.
First of all it is very important to know that negative gearing income when a
person is dealing with larger amount of money and mostly it comes in real
estate business. Now coming on to how it occurs and what it is. For
instance suppose you have taken a lone or you have mortgage something
and taken money from the market to buy a property or asset then you are
liable to pay the interest amount on the loan that you have taken from the
market or a bank.
A particular interest amount you are liable to pay and when at the time of
repaying the loan amount and the interest amount if the asset you have
purchased is not enough to cover up the interest and the loan money then
that is the situation which is called the negative gearing as you cannot
take cover up the loan and interest amount also from the asset you bought.
For more information visit this link: - http://negative2positive.com.au/