Negative Gearing

Few people really understand what negative gearing is and how best it can be used to grow your asset base effectively.

Negative gearing put simply is the situation that occurs when the income return from an investment is exceeded by the cost (i.e. interest) of investing in that asset.

It is best known for it's applications in purchasing property investments but can be extremely effective when used to purchase blue chip Australian equities that are fully franked.