Opinion
Investors feel negative gearing pain as rate rises bite
Investments or holiday houses bought when rates were low face tough decisions as holding costs may prove too expensive.
Michael HuttonContributorFor 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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