Re:New Zealand to ban foreigners from buying existing houses
by jpollock on Thursday October 26, 2017 @06:19PM
(#15563698)
Negative gearing is when the house is run at a loss and the loss taken against regular employment income.
That would be when the rent doesn't cover the mortgage interest + maintenance costs.
The benefit is that the dominant form of income in the investment is the capital gains, which is under your control to take at a later date when you'll pay a lower tax rate.
That would be when the rent doesn't cover the mortgage interest + maintenance costs.
The benefit is that the dominant form of income in the investment is the capital gains, which is under your control to take at a later date when you'll pay a lower tax rate.
https://en.wikipedia.org/wiki/Negative_gearing