In property investing positive gearing is where the rent received exceeds the interest on money borrowed to finance the purchase. You often hear about positive gearing – especially from people with a property they want you to buy! But is positive cash flow property actually worth pursuing? The answer depends on what is creating the positive cash flow situation. Sometimes, these factors combine to make positive gearing a wonderful way to reduce risk. But at other times, the factors creating the positive gearing can make an investment very risky indeed. This article shows you how to tell the difference.
Super contributions are a legitimate expense of a business. As long as the business uses a company structure, it can even borrow to make contributions on behalf of all of the staff – including the company directors. This can create a nice little tax saving that might not otherwise be possible.
Did you know you can pay the same rate of interest to a bank – but that the actual cost to you of that debt will differ depending on whether the interest is deductible or not? This makes managing debts for tax effectiveness one of the most useful things any business owner or investor can do. This is a simple idea but it is important that you get the detail right. So, please read on and don’t hesitate to contact us if you would like to hear how you can take advantage of this simple mathematical truth.
Why not make some hay while the sun is shining?
Dedicated-use credit cards make for a simple way to keep track of business expenses.