MID aspires to change the way Australians invest in property by unlocking property investment techniques used by professionals, combined with developing the technology platform necessary to deliver an understandable and user-friendly application for all property investors. To that end, we have launched the MID Standard Investment Property Analysis Application™ that will be offered absolutely free.
We intend to break down boundaries and will continue to develop new and innovative features that will be more accessible and customisable for all property investors.
Positive or negative gearing?
MID’s Investment Property Analysis Application™ allows you to quickly find out whether a potential property investment offers positive or negative gearing benefits.
A rental property is negatively geared when the interest on your mortgage plus other property related expenses exceeds your property's rental income. A negative gearing strategy mayenable a reduction in your tax payable or offer a larger tax refund. The largest part of the deduction is the interest portion of the mortgage however you can also claim other expenses relating to rates, property management fees, loan costs and maintenance and repairs.
Conversely, positive gearing is where the rental income received is greater than the interest and other property related expenses and therefore creates a situation where tax must be paid on the profit. A positive gearing strategy results in an investment property generating positive cash flow and therefore additional income for the investor.
Whether a negative or positive gearing strategy is appropriate for you depends on your individual investment requirement and you should seek advice from a financial advisor. However, MID’s application makes it easy for you make a smarter decision by estimating your property's tax position as well as the property’s positive or negative gearing potential.