I'm aware of the merits in negatively gearing both a business...

  1. 164 Posts.
    I'm aware of the merits in negatively gearing both a business and investment property. However negatively gearing a business does not rely entirely on capital gains to be viable. Negatively gearing an investment property does.

    I stand by my statement that anyone buying a new investment property to negative gear in the current environment has rocks in their head.

    Buying a first home or new PPOR? Sure. Probably not the best time to buy but no reason not to.
    Buying a positively geared investment property? Sure.
    But honestly, would you buy a negatively geared property today? With no idea how long it will take to get back to your purchase price after the correction has finished? Just absorb those losses without any gain for the next X years? And the longer it takes the more it has to rise to overtake the cumulative losses.
 
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