For the first time in many years, investors are becoming reacquainted with the pain that can accompany a negative gearing investment strategy.
Negative gearing is where the costs of owning an investment outweigh the income generated. The aim is to earn a capital gain when the asset is sold, as well as claiming a tax deduction on the losses while the asset is held.
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Michael Hutton is wealth management partner at HLB Mann Judd Sydney.
