The negative gearing loophole few investors are talking about
The Government's negative gearing reforms may have created an unintended divide between aspiring investors and those who already own property.
Australia's new negative gearing laws may disadvantage first-time investors while allowing established property owners to continue offsetting losses across existing portfolios. (Image source: Sergey-Nivens/Shutterstock.com + API Magazine)
Negative gearing is dead. At least that is what the government would like us to think.
The Federal Government’s negative gearing reforms were designed to discourage investment in established housing and encourage new construction. But buried within the legislation is a provision that may produce an unexpected outcome: existing property investors can continue to offset rental losses in circumstances where first-time investors cannot.
On 26 June, T…
