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Does this Negative Gearing strategy work?

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armin | 04 Apr 2017, 10:16 PM Agree 0
I am thinking of buying my first house which is an investment property.
Can I get a 15 years loan which is a principal+interest which makes the mortgage higher than the rent? Then using the negative gearing to cover some part of losses?
  • Ram | 05 Apr 2017, 04:03 PM Agree 0
    You could only claim interest paid for negative gearing purposes, actually it will have reverse effect and reduce your negative gearing amount, as you will be paying much larger principal amounts and hence less interest.
  • armin imani | 05 Apr 2017, 05:06 PM Agree 0
    S I your are saying that it is a good idea if I go for a 15 years loan with interest only?
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