Dual occupied negative gearing is a tax-lowering strategy that even the Australian Treasury Department accepts. Mortgage Street works with brokers whose clients are seeking to invest in properties.

Dual Occupied Negative Gearing: An Accepted Tax Tool

The job of the Australian Taxation Office is to collect taxes on items from income to assets. The Treasury of the Australian Government advises on budget policy issues and trends. They also publish white papers on topics such as negative gearing.
A homeowner who owns a double-occupied property lives in one and rents out the other. Dual occupied negative gearing means that a homeowner lives in one property, rents out the other, but the income from the rental does not cover the costs of maintaining both. The negative allows the owner to claim the loss on their taxes. This becomes a leverage tool against positive income on the tax form to reduce total liability.
The white paper published by the Australian Treasury office acknowledges that negative gearing does not appear in tax legislation. However, it’s a tool that some Australians use against their tax liability. Some individuals, namely investors, are willing to incur a loss on an investment in the present. They’re anticipating their profit from the property sale will cover their current loss and future tax liability. An investor is willing to take on the risk for an attractive payout later.
There’s little doubt that the Australian real estate market provides opportunities regardless of the market’s condition. Investors are given some runway to provide to other Australians. Real estate investors who purchase dual-occupied properties are capturing properties before their prices rise higher.
It allows them to rent to Australians at a price that affords them an income but lower than the paper value of the property.

Dual Occupied Negative Gearing Conclusion

Brokers who come across a client interested in dual occupied negative gearing and require financing can contact Mortgage Street. We work with brokers and their clients to help each achieve their financial goals. We offer a variety of financial products to fit most financial situations.